Geely Holding, Foxconn forge joint venture for OEM production

MANILA: Zhejiang Geely Holding Group (Geely Holding) and Foxconn Technology Group (Foxconn) have signed an agreement to organize a joint venture company that will manage original equipment manufacturer (OEM) production and customized consulting services for whole vehicles, parts, intelligent drive systems, automotive ecosystem platforms, and electric vehicle industry value chain.

The joint venture aims to upgrade the production system of car manufacturing companies. It targets to promote the use of an innovative business model that is patterned on CASE (Connected, Autonomous, Shared, and Electrified) technologies. Geely Holding and Foxconn will each own half of the venture. The board of directors will include three representatives from Foxconn and two from Geely Holding.

The agreement was signed in an virtual ceremony by Geely Holding Group President and Geely Auto Group CEO An Conghui and Foxconn Chairman Young-way Lui. Also present during the digital event were Geely Holding Group Chairman Li Shufu and Foxconn Founder Terry Gou.

Liu stated, “This alliance between Geely Holding and Foxconn represents a milestone in cooperation between the automotive industry and ICT industry. With Foxconn’s globally leading R&D technologies, intelligent manufacturing, and hardware-software integration capabilities, the two parties form a highly complementary partnership which allows us to better serve and meet the diverse needs of different customers, and offer the most advanced, fastest, cost-effective full value-chain vehicle production service platform. The partnership with Geely Holding does not just align with our company’s vision of “3+3=∞” which symbolizes the infinite possibilities created by Foxconn’s industrial advancement and emerging technologies, it will also result in tremendous change in the development of the automotive industry. I look forward to the great potential that this partnership will bring about.”

Zhejiang Geely Holding Group CEO Daniel Donghui Li mentioned the significance of the joint venture agreement for both groups. He said, “The current global automotive industry is undergoing profound changes. We must actively embrace change, build alliances, and synergize global resources to create greater value for our end users. Foxconn’s professional capabilities, rich experience, and global layout in the ICT industry offer important insight for the transformation and evolution of the automotive industry. Geely Holding Group will give full play to its advantages in the automotive fields of design, engineering, R&D, intelligent manufacturing, supply chain management, and quality control while joining forces with Foxconn to develop together and explore new pathways for transforming, improving, and achieving high-quality development of the manufacturing industry.”

Photos from Geely Philippines

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