Fiat Chrysler Automobiles (FCA) confirmed Friday that it is in discussions with major electronics manufacturer Foxconn, formally known as Hon Hai Precision Industry Co Ltd., regarding the potential creation of an equal joint venture.
The proposed joint venture is to develop and manufacture in China new generation electric vehicles and to engage in the IoV (Internet of Vehicles) business, FCA said in a statement.
"The proposed cooperation, initially focused on the Chinese market, would enable the parties to bring together the capabilities of two established global leaders across the spectrum of automobile design, engineering and manufacturing and mobile software technology to focus on the growing battery electric vehicle market," it added.
The parties are in the process of signing a preliminary agreement which will govern further discussions aimed at reaching final binding agreements in the next few months, FCA said.
The Italian-American carmaker said it closed 2019 with December sales in Europe up 13.8 percent year-over-year to more than 69,400 vehicles and a market share of 5.5 percent.
Founded in China's Taiwan Island in the 1970s, Foxconn has expertise in cloud computing, mobile devices, Internet of Things (IoT), big data, artificial intelligence (AI), smart networks and robotics, according to its corporate website.