Geely Teams Up With Foxconn

The strategic cooperation agreement will establish a joint venture aimed at contract manufacturing in automakers.
Benjamin WangJan 13,2021,17:23

Geely Automobile Holdings Ltd. (OTC: GELYF; HKEX: 00175) announced Wednesday that it signed a strategic cooperation agreement with Foxconn Interconnect Technology Ltd. (OTC: HNHP; FHKEX:06088) to establish a joint venture company, aiming at contract manufacturing in automakers.

Under the deal, two parties will hold 50% each of the joint venture company. The company will provide OEM and customized consulting services for global automobile and travel companies, including whole automobiles or parts, the intelligent control system, the automobile ecosystem, and the whole process of the electric vehicle industry chain, Geely said.

Foxconn, formerly known as Hon Hai Precision Industry, has been one of Apple Inc.’s (Nasdaq: AAPL) major suppliers. And Apple is likely to launch a self-driving electric car by 2024, reported by Reuters.

Early this month, Geely announced the cooperation with Baidu (Nasdaq: BIDU) to make electric vehicles for China.

According to the partnership, Baidu will provide in-vehicle software and Geely will offer engineering technology, with the new car to be produced at Geely's factories. The two will also work together on Geely's new EV platform.

Moreover, the cooperation with Foxconn will enable Geely to share its first EV-focused platform, launched in September, with other automakers.

Shares of Geely closed at HK$32.7 in Hong Kong, up 1.08%. while Foxconn rose 10.77%, closing at HK$2.88.

In New York, Geely was down marginally as of midday Wednesday, trading at $.23 per share. The stock is still holding, however, after rising from $3.69 per share last Friday, January 8.

Topics:Geely; Foxconn; China; U.S.