Preliminary Agreements Signed.
Automobile manufacturer Fiat Chrysler (FCA) plans to create a joint venture with Hon Hai Precision Industry, better known as Foxconn, a contract manufacturing electronics company. The participation of the parties in the joint venture will be equal. The goal of the enterprise will be the development and production in China of electric vehicles with an Internet connection.
This year, FCA is about to release its first all-electric model, the heiress of a subcompact 500, and last month the group entered into a merger agreement with the French auto giant PSA. This deal, valued at $ 50 billion, will lead to the creation of the fourth largest car manufacturer in the world. The merger is expected to help the Italian-American automaker allocate resources to bring its products in line with the new emission regulations, and direct investments in electric cars, a segment where it still lags behind its main competitors.
According to FCA, the process of signing preliminary agreements with Hon Hai is underway, and final binding agreements should be signed in the next few months. However, there are no guarantees that they will be achieved.
Currently, the FCA occupies about 0.35% of the passenger car market in China.