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        home > news > Automakers > FCA Looks to Grow Presence in China with EV Joint Venture

        FCA Looks to Grow Presence in China with EV Joint Venture

        Companies are looking to develop connected cars too.

        Michael Strong
        Michael Strong , Managing Editor
        Jan. 16, 2020
        Fiat Chrysler is looking to expand its presence in China as well as in the EV market with a new partnership.

        Fiat Chrysler is looking to expand its presence in the world’s largest automotive market by partnering with Taiwan’s Hon Hai to manufacture electric vehicles as well as developing and, eventually, producting wirelessly connected vehicles.

        The two companies are talking to set up a 50-50 joint venture, Hon Hai said in a statement. It added Hon Hai would hold its 50% share both directly and indirectly and that its direct shareholding would not exceed 40%.

        FCA’s been late to both China and electric vehicles, teaming with Hon Hai would help accelerate the process.

        (FCA spending $788M to build 500 BEV in Italy)

        The Italian American automaker is in the process of a $50-billion merger with PSA, which will also help with it’s electric vehicle program. However, like many auto companies, it’s looking to attack the issue from multiple points.

        The joint venture with Hon Hai would produce vehicles solely for the Chinese market, but many details of the accord are still to be worked out, Reuters reported. The deal is expected to be complete in the next few months.

        Hon Hai is owned by Foxconn, which also holds stakes in other mobility companies like Didi Chuxing, the Chinese ride services giant, and Chinese electric vehicle startups Byton and Xpeng, Reuters noted.

        (FCA Has Big Electrification Plans Coming)

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        One response to “FCA Looks to Grow Presence in China with EV Joint Venture”

        1. Jim says:
          January 17, 2020 at 6:18 am

          I hope they don’t pin their hopes on an electric Fiat 500.

          Reply

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