Beijing (PingWest)- Chinese automaker Zhejiang Geely Holding Group and Foxconn Technology Group have inked a strategic cooperative agreement that will set up a joint venture that focus on providing contract manufacturing service to the global auto industry.
The joint venture will be 50/50 owned by Geely and Foxconn. Among the five members of the board of directors, three are from Foxconn. The chairman will be appointed by the Foxconn as well.
Under the agreement, Foxconn and Geely will provide car production, consulting, intelligent driving systems and other services to global automotive enterprises.
The deal, which was announced on Wednesday, marks Apple INC supplier-Foxconn’s continued expansion into the auto sector after a strategic partnership signed with Chinese electric car startup Byton and come after media reports that Apple is likely to launch a self-driving electric car by 2024.
For Geely, the partnership reflect the company’s desire to work with technology company.
On Monday, Geely entered into a strategic partnership with Baidu to form a joint venture aiming at building smart electric vehicles.
For the partnership, Baidu will provide intelligent driving system Apollo to power the passenger vehicles for the new venture, and Geely, which own Volvo and a stake in Mercedes- Benz owner Dailmer, will contribute its expertise in automobile design and manufacturing.