Under the agreement, the joint venture will introduce the ICT (information and communications technology) labor division to help clients speed up their transition to the innovative high-efficient manufacturing & supply systems and business models.
Each party to hold equal 50% stake in new joint venture. The board of directors will consist of five members with Foxconn appointing three including the Chairman and Geely Holding appointing two, according to a statement issued by the two companies.
It was the second deal to be announced this week by Geely, which linked up with Chinese search giant Baidu to co-develop intelligent electric vehicles.
Geely Holding Group CEO Daniel Donghui Li said that the global automotive industry is undergoing profound changes.
Two days ago, Geely entered into a strategic partnership with Baidu to invest in the latter's forthcoming smart vehicle company.
Zhejiang Geely Holding Group and Foxconn Technology Group have agreed to establish an auto joint venture that will provide production and consulting services to global auto makers.
Foxconn is a supplier to Apple.
Amid studies of Apple taking into consideration making its very own electrical autos, Foxconn has been bulking up its automotive muscle mass quickly.
Its main listed company, Geely Automobile, has the capacity to build more than 2 million vehicles a year but sold only some 1.32 million in 2020. That need for capital has prompted a number of EV startups to become publicly traded companies by merging with a special goal acquisition company.
Young-way Liu, Chairman of Foxconn Technology Group said: "This alliance between Geely Holding and Foxconn represents a milestone in cooperation between the automotive industry and ICT industry".