Stellantis and Foxconn form vehicle technologies joint venture
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MILAN, Italy - Carmaker Stellantis and iPhone assembler Foxconn said earlier today they plan to create a joint venture to supply in-car and connected-car technologies across the auto industry. The two companies have signed a non-binding memorandum of understanding to form Mobile Drive, a 50-50 joint venture based in the Netherlands, focused on infotainment, telematics and cloud service platform development.
For Stellantis, but others welcome
Mobile Drive will operate as an automotive supplier and take part in tenders to provide software systems and related hardware for Stellantis and other interested automakers, the companies said in a joint statement.
The software developed will include artificial intelligence-based applications, 5G communication, upgraded over-the-air services, e-commerce opportunities and smart cockpit integrations, they added.
Fiat Chrysler carving its own path
The partnership announcement is less extensive than the market had expected after Fiat Chrysler, now part of Stellantis, said it was planning to set up a joint venture with Hon Hai Precision Industry, Foxconn's parent company, to build electric cars and develop internet-connected vehicles in China. Finalisation of that deal was delayed last year by merger talks between Fiat Chrysler and France's Peugeot maker PSA, which led to the creation of Stellantis, the world's fourth-largest carmaker, at the start of this year.
Milan-listed shares in Stellantis were up 1.5% this morning, slightly outperforming Milan's blue-chip index, due to this announcement.