Fiat Chrysler Partners with Foxconn for EVs
iPhone Manufacturer in big EV push
Fiat Chrysler announced today (17th January 2020) that it is in discussions with Taiwan’s Foxconn regarding the creation of a joint venture for the development of EVs. The JV will first focus on the development of Battery Electric vehicles in China and will also engage in the IoV (Internet of Vehicles) business.
Foxconn can now be a big EV player without an Apple EV
Apple has been making investments in the EV marketplace for several years now. Initially it seemed that Apple may create their own EV to compete head to head with Tesla. Later it appeared that that ambition had come to nothing and that Apple would instead focus on ‘autonomous vehicles.’ However, in 2019 Apple dismissed over 200 employees from its self-driving car division, also known as Project Titan. This potential agreement with Fiat Chrysler now gives Foxconn a clearer path to participate in the EV market and not get left behind.
Deal follows the Fiat Chrysler merger with Peugeot
In December 2019, Fiat Chrysler and France’s Peugeot group announced merger plans. This tie-up will create the world’s fourth largest automaker. The merger is expected to yield savings of more than $4 billion USD per year. This will allow the company the to make the required investments in EVs and autonomous vehicles – where it is well behind. Seen in this light, the new Foxconn deal will enable reduced time to market for the many electronics systems that drive EVs.
FCA to release its first fully electrically powered EV in the Chinese market this year.
The Chinese government has placed pressure on manufactures to quickly increase their production of EVs. This will have advantages for China in the area of technology advancement but will also help clean up the air pollution that has been an embarrassment to the Chinese government for years. Fiat Chrysler is expected to produce its first fully electric car for the Chinese market later this year.