Geely and Foxconn create alliance to manufacture vehicles for other automakers

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File image of a poster featuring the Foxconn logo at the IEEE Global Communications Conference in Taipei, Taiwan. December 9, 2020. REUTERS / Ann Wang / Archive

Por Yilei Sun y Yimou Lee

BEIJING / TAIPEI, Jan 13 (Reuters) – Taiwan’s Foxconn and Chinese automaker Zhejiang Geely Holding Group said on Wednesday they will team up to provide contract manufacturing to other automakers.

Each of them will have 50% of a company that will also provide consulting services on electric vehicle (EV) technologies to automakers, the companies said in a statement.

The announcement marks the latest move by Foxconn, a major supplier to Apple Inc, into the auto sector after an alliance with Chinese electric car company Byton. It also comes amid reports that Apple could launch an autonomous electric car by 2024.

For Geely, the partnership will allow it to share its first EV-centric platform, launched in September, with other automakers, according to people familiar with the company’s plan.

It is also the second deal announced this week by Geely, which said it will work with Chinese search engine giant Baidu Inc to make electric vehicles.

Geely, which owns Volvo Cars and owns 9.7% of Daimler AG, wants to improve the capacity utilization rate of its plants in China, said the sources, who were not authorized to speak to the media and declined to be identified. .

(Reporting by Yilei Sun and Yimou Lee; Edited in Spanish by Gabriela Donoso)

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