Geely and Foxconn joint venture "professional automobile foundry" landed, FF or for the first customer

Economic Observation Network reporter Wang Shuaiguo On December 27, Shandong Fujikang Intelligent Manufacturing Co., Ltd. (hereinafter referred to as "Fujikang"), jointly held by Geely Holdings subsidiary and Foxconn subsidiary, was officially established in Zibo, Shandong Province.

According to the Qixinbao APP, the legal representative of Fuji Kang is Li Guangyao, with a registered capital of 100 million yuan, and the business scope includes: auto parts research and development, auto parts and accessories manufacturing, auto parts retail wholesale, auto new car sales, etc. The equity penetration shows that the company's two shareholders, Zhejiang Geely Production and Investment Holding Co., Ltd. and Futaihua Industry (Shenzhen) Co., Ltd., each hold 50% of the shares.

On January 13 this year, Geely Holdings and Foxconn announced that the two parties will establish a joint venture to provide foundry production and customization consulting services for global automobile and travel enterprises, including but not limited to complete vehicles or parts, intelligent control systems, automotive ecosystems and the whole process of the entire industry chain of electric vehicles.

At that time, the two sides said that the joint venture company will introduce the ICT (information and communication technology) division of labor model to help customer enterprises surpass the existing automobile industry model, accelerate the transformation to an innovative and efficient manufacturing supply chain system and business model, and pave the way for the electrification, intelligence, networking and sharing of automobiles.

According to the agreement signed by the two parties, each party holds 50% of the shares, and the board of directors is composed of 5 directors, of which Foxconn appoints 3 directors, Geely Holdings appoints 2 directors, and the chairman is appointed by Foxconn. This reveals that Foxconn may dominate in the joint venture.

At the end of January, Geely Holdings signed a framework cooperation agreement with Faraday Future (hereinafter referred to as "FF", Chinese name: Faraday Future), a subsidiary of Jia Yueting, to cooperate in the field of technical support and engineering services, and to explore the possibility of joint venture between Geely and Foxconn to provide foundry services. At the same time, as a financial investor, Geely Holdings also participated in a small number of investments in the listing of FF SPAC. At that time, the industry believed that FF would become the first customer of geely's joint venture with Foxconn.

In addition to FF, there are other car companies that have "intersected" with Fujikang. At the beginning of this year, Baidu announced in a high-profile manner that it had joined forces with Geely Holdings to form Jidu Automobile to enter the automotive industry as a vehicle manufacturer. The two sides said that they will jointly build the next generation of intelligent vehicles based on Geely's latest pure electric architecture, Haohan SEA. At that time, there was also news that Foxconn would produce cars for Apple. Based on these news, some people have linked Geely's joint venture foundry with Foxconn with Jidu Automobile and Apple Automobile. But this judgment has not been officially confirmed.

Foxconn is not willing to just do foundries, but actively build its own car brand. On October 18, at the "Hon Hai Technology Day" held in Taipei City, Foxconn's parent company Hon Hai Precision Industries Co., Ltd. officially released the pure electric vehicle brand - Foxtron. At that time, the Foxtron brand launched three new cars, a pure electric sedan Model C, a pure electric SUV Model E and an electric bus Model T, which had a hint of benchmarking Tesla from the product name.

According to the Economic Observer Network reporter, although there is still a car that has not been out, Foxconn's car-making stalls are quite large. Foxconn plans to produce cars first in Europe, then in India and Latin America. Foxconn will adopt the BOL model, working with partners to invest in the construction and operation of local factories, which are then sold to local consumers.

Foxconn has struck deals with U.S. electric vehicle startup Fisker and Thai energy group PTT PCL. In an effort to accelerate the growth of its automotive business, foxconn also acquired a plant that produces electric vehicles from U.S. startup Lordstown Motors in October.

Foxconn has set a goal of diversifying revenue streams by providing parts or services to 10 percent of the world's electric vehicles between 2025 and 2027. The landing of Fujikang's foundry may help Foxconn achieve its goals.