Even last year, we reported that Taiwan’s Foxconn also wanted to conquer the electric car market with its contract manufacturing service, using the help of the only Taiwanese automaker, Yulon, to develop its own building kit. However, they will no longer need the latter, as it has now been announced that they have formed a joint venture with the Chinese Geely Group (including owners of the Volvo and Smart brands). The company, which has a 50-50% ownership, was set up specifically to provide stakeholders with relevant experience in the automotive industry for the wage service, so it is likely that companies with less interest in the subject, but with more fresh capital, will be more easily persuaded. about the order.
Foxconn recently signed a deal worth hundreds of millions of dollars to rescue Byton startup, and Geely has recently signed a contract with Chinese search giant Baidu to build electric cars for it – both agreements are expected to be under the new Foxconn-Geely within the framework of a joint venture. Geely, by the way, has a production capacity of 2 million cars a year worldwide, but last year it only produced 1.32 million cars, the target for 2021 is 1.52 million cars, so quasi immediately – saving the time and investment needed to make a greenfield investment – has approx. The new company has a production capacity of 500,000 cars / year.
Ten Million Geely in 23 years
Geely Auto was founded in 1997 by Li Shufu, who is today the company’s president, after realizing that Chinese society will move from bicycles and motorcycles to cars. As the first Chinese private enterprise to start manufacturing low-cost cars, their first car was built in 1997 under the Daihatsu Charade as Hao Qing. In the first year, 10,000 cars were produced, reaching the level of 100,000 cars / year by 2003, which was tripled by 2009 (326 thousand cars / year), and in 2018 it was already at 1.58 million cars / year. Geely Auto’s owner, Zhejiang Geely Holding Group, bought Volvo Auto in 2010, acquired the Proton and Lotus brands in 2017, Smart in early 2019, and has also established the Lynk & Co, Geometry and Polestar brands over the years. .
CMA, BMA and the new SEA will build the group’s new models on electric car building kits.
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