After nearly a year, the joint venture between Geely Holdings and Foxconn finally landed.
According to public information, on December 27, Shandong Fujikang Intelligent Manufacturing Co., Ltd. (hereinafter referred to as "Fujikang"), which is jointly held by Geely Holdings subsidiary and Foxconn subsidiary, was officially established in Zibo, Shandong Province.
According to the registration information of the joint venture company, The registered capital of Fujikang is 100 million yuan, and the legal representative is Li Guangyao, which is 50% owned by Zhejiang Geely Production and Investment Holding Co., Ltd. and Futaihua Industry (Shenzhen) Co., Ltd.
The business scope of the joint venture includes intelligent on-board equipment and basic equipment manufacturing; intelligent control system integration; power electronic components and motor manufacturing; mechanical parts and parts processing; integrated circuit chip and product manufacturing; auto parts research and development, manufacturing, retail and wholesale.
In fact, as early as January 13 this year, Zhejiang Geely Holding Group Co., Ltd. signed a strategic cooperation agreement with Foxconn Technology Group, announcing that it will establish a joint venture company 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, automobile ecosystems and the whole process of the whole industry chain of electric vehicles.
According to the agreement signed at that time, the board of directors of the joint venture company consisted of 5 directors, of which Foxconn appointed 3 directors, Geely Holdings appointed 2 directors, and the chairman was appointed by Foxconn.
Although Geely and Foxconn each hold half of the shares, from the perspective of the proportion of directors appointed by the two parties, Foxconn's voice in Fujiconn may have the upper hand slightly.
In addition, the joint venture also plans to introduce an ICT (information and communication technology) division of labor model to "help customer companies surpass the existing automotive 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."
The implication is that the joint venture company jointly established by Geely and Foxconn is mainly to provide OEM production services for third-party enterprises.
On January 29 this year, shortly after signing a strategic cooperation agreement with Foxconn, Geely Holdings signed a framework cooperation agreement with Faraday Future, in which the two sides plan to cooperate in the field of technical support and engineering services, and explore the possibility of joint venture between Geely and Foxconn to provide foundry services. At that time, the industry speculated that the first car brand manufactured by the joint venture company was Faraday Future.
Since then, the joint venture cooperation between the two has also been considered related to the OEM Apple car. However, this judgment has not been officially confirmed.
At the "Hon Hai Technology Day" on October 18, Foxconn's parent company Hon Hai Precision Industries Co., Ltd. also released the pure electric vehicle brand Foxtron, further highlighting Foxconn's ambition to "build cars". Foxconn has set a goal of providing parts or services to 10% of the world's electric vehicles by 2025-2027.
It can be speculated that the landing of Fujikang's foundry will also be part of helping Foxconn complete the goal of "building cars".
On the other hand, for Geely, the joint venture foundry should be part of its transformation strategy of "casting a wide net".
Also on October 18, Zhejiang Geely Holding Group Co., Ltd. added battery manufacturing, motor manufacturing, integrated circuit chip and product manufacturing to its business scope. In line with some of Fujikang's business projects, they all involve the manufacture of electric vehicle parts.
In addition to Foxconn, since the beginning of this year, Geely Holdings has frequently reached cross-border strategic cooperation with Baidu, Tencent and other enterprises.
According to geely's development concept of United Anderson, it has cooperated with the foundry of the electronic technology manufacturing giant Foxconn to open a new model of car manufacturing.
As the world's largest electronic technology intelligent manufacturing service provider, Foxconn has strong advantages in intelligent manufacturing, vertical integration of hardware and software ecology, and ICT. This long-term accumulation of modular and large-scale advantages can quickly improve the efficiency of automobile manufacturing. At the same time, for Geely, which wants to enter the field of foundry, Foxconn can play an exemplary role and can quickly improve the foundry capacity through cooperation between the two.
After the joint venture foundry landed, Geely may also hope to provide open foundry production services for third-party enterprises, so as to obtain resources and profits. However, in the current automotive industry, the OEM model is not mainstream, and whether the cooperative OEM model chosen by Geely can go out of the circle or need more time to experiment.