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Stellantis, Foxconn to form car technology JV focused on connectivity

imageStock Markets9 minutes ago (May 18, 2021 06:41AM ET)

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(C) Reuters. FILE PHOTO: A flag with the logo of Stellantis is seen at the company’s corporate office building in Saint-Quentin-en-Yvelines near Paris, France, May 5, 2021. REUTERS/Gonzalo Fuentes/File Photo

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MILAN (Reuters) -Carmaker Stellantis and iPhone assembler Foxconn said on Tuesday 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.

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.

The partnership is less extensive than the market had expected after Fiat Chrysler, now part of Stellantis, said last year 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 by merger talks between Fiat Chrysler and France’s Peugeot (OTC:PUGOY) 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% by 1013 GMT, slightly outperforming Milan’s blue-chip index.

Stellantis, Foxconn to form car technology JV focused on connectivity

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