Hon Hai subsidiary spends US$75 million to set up second joint venture with Stellantis

With the continuous development of electric vehicles, many companies have begun to enter the field of electric vehicles and actively expand their market share in the electric vehicle industry. Among them, the Hon Hai Group moves frequently. On September 1, the Model C, the first electric vehicle developed by Hon Hai and Honghua Advanced Technology Co., Ltd., a subsidiary of Yulon, officially started pre-orders.

Hon Hai Group announced that its subsidiary Foxconn Holdings BV will spend 75 million US dollars (about 534 million yuan) to establish a second joint venture with Stellantis, the fourth largest automaker in the world. Deepen the layout and cooperation in the field of electric vehicles. Hon Hai said its subsidiaries Foxconn Holdings BV and Stellantis would each own 50 percent of the subsidiary, and pointed out that it was a long-term investment.

According to reports, in 2021, Hon Hai Group announced the cooperation with Stellantis, the second joint venture company established this time, which will further the cooperation between the two parties. Previously, Hon Hai and its subsidiary Fuzhikang have joined hands with Stellantis to jointly establish Mobile Drive, focusing on related applications such as advanced smart cockpit and Internet of Vehicles services. At the same time, Hon Hai Group announced to increase in its capital in its battery material company, Core Technology, with a total transaction value of NT$474 million (approximately RMB 107 million).

On August 18, Hon Hai Chairman Liu Yangwei said that the group’s overall performance is expected to break through the NT$6 trillion (about 1.36 trillion yuan) mark this year, setting a new record high. Liu Yangwei believes that the mobile phone industry used to be brilliant, but now it is going downhill. The emerging industry that will succeed the mobile phone industry in the future will be the electric vehicle industry.

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