Geely, Foxconn aim to build cars for other automakers

BEIJING/TAIPEI -- Taiwan's Foxconn and Chinese automaker Zhejiang Geely Holding Group said on Wednesday they will cooperate to provide contract manufacturing for automakers.

It marks the latest move by Foxconn, a major Apple supplier, into auto production after a tie-up with Chinese electric car startup Byton to help build its M-Byte SUV, and comes amid reports that Apple is likely to launch a self-driving electric car by 2024.

For Geely, the partnership will allow it to share its first EV-focused platform, launched in September, with other automakers, according to people familiar with Geely's plan.

The companies will each hold 50 percent of a venture that will also provide consulting services on electric vehicle (EV) technologies to automakers, the companies said in a statement.

Geely, which owns Volvo Cars and holds 9.7 percent of Daimler, is keen to improve the capacity utilization rate of its plants around China, said the sources, who were not authorized to speak to media and declined to be identified.

Its main listed company, Geely Automobile, has the capacity to build more than 2 million vehicles a year but sold only about 1.32 million in 2020. Geely Automobile plans to issue shares on mainland China's STAR board this year.

Foxconn said in October it aimed to provide components or services to 10 percent of the world's EVs by 2025-2027.

It is the second deal this week announced by Geely, which said it will work with Chinese search engine giant Baidu to make electric vehicles.