Taiwan-based manufacturing giant Hon Hai Precision Industry Co. and multinational auto manufacturer Stellantis NV will set up an US$80 million joint venture, with the deal expected to be signed as early as Oct. 31.
In a statement, Hon Hai said subsidiary FIH Mobile Ltd., which is listed on the Hong Kong stock exchange, will partner with Stellantis in the 50-50 joint venture, to be named Mobile Drive.
It said it expected the agreement to be signed by Oct. 31, but cautioned that because of a possible wait for regulatory approval, the deadline for the deal could be pushed back to March 31, 2022.
Hon Hai’s partnership with Stellantis is aimed at providing smart cockpit solutions for vehicles and gaining a foothold in the Internet of Vehicles (IoV) market by offering entertainment, communications and cloud technology-based applications, the company said.
In addition, the joint venture is expected to provide solutions for voice recognition, e-commerce, and e-payment for vehicle use, Hon Hai said.
Hon Hai disclosed the joint venture deal with Stellantis in May, when both signed a memorandum of understanding for future cooperation, but no financial terms were revealed at the time.
In addition to an injection of cash into Mobile Drive, Stellantis will allow the joint venture use of its intellectual property rights, while FIH will inject some of its assets in Taiwan and China into the new company, according to Hon Hai.
The partnership with Stellantis is part of Hon Hai’s bid to expand into the electric vehicle market through efforts such as a planned electric vehicle production site in the United States, in partnership with American EV maker Fisker Inc., using the MIH Open Platform.
The platform was initiated by Yulon Group subsidiary Hua-Chuang Automobile Information Technical Center Co, with which Hon Hai formed a joint venture called Foxtron Vehicle Technologies Co. to provide solutions to other automakers.
Hon Hai hopes to build the platform into the “Android of the electric car industry” as part of its efforts to enter the global electric vehicle market.
For its part, Stellantis, formed this year on the basis of a merger between Fiat Chrysler Automobiles of Italy and the French PSA Group, ranks as No. 4 worldwide in terms of auto sales volume and No. 3 in sales value.
Stellantis owns prestigious auto brands such as Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo and Maserati.
Source: Focus Taiwan News Channel