Foxconn enters the electric car market with the automaker

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Known for its presence in the smartphone world and its extensive partnership with Apple, Foxconn decided to bet on a new segment. Last Wednesday (14), the company announced that, together with the Chinese car manufacturer Zhejiang Geely Holding Group, it will dedicate itself to investments in the electric vehicle market.

Each of them will have 50% of the shares of an enterprise that will also provide consultancy on EV technologies to other automakers. It is not clear whether the movement in question has to do with rumors that the Apple company will launch similar products in the coming years, even if it meets the Taiwanese objectives of providing components or services to 10% of the planet’s units among 2025 and 2027.

As for Geely, according to Reuters, several company plans will benefit from the merger.

Energizing the scenario

Owner of Volvo Cars and 9.7% of German car manufacturer Daimler AG, Geely intends to improve the utilization rate of its facilities in China, with the capacity to build 2 million vehicles annually, indicate sources who preferred not to. to identify. Last year, only 1.32 million units were sold for it.

In addition, the agreement, as announced this week, along with the deal with Baidu, also related to electric vehicles, will allow it to share its first platform with a focus on the sector, launched in September 2020.

As expected, the world market reacted to the news. While its shares appreciated 1%, Foxconn’s rose 2.4%.

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