The venture, in which Hon Hai would hold at most a 40 percent stake, would combine the innovative spirit and strengths of both companies, while focusing on businesses that apply the Internet of Things to the automotive industry, Hon Hai said. Fiat Chrysler, which agreed to merge with Peugeot and Citroen owner Group PSA in October last year, would be in charge of traditional manufacturing. Hon Hai and Fiat Chrysler plan as a first step to manufacture electric vehicles in China for the local market, it said. Hon Hai and Fiat Chrysler are focusing on the Chinese market because of sheer volume, Liu added. “Vertical expertise is key in auto, and so a deal like Fiat Chrysler — if it proves successful — can help unlock doors for Hon Hai, as that would be a strong reference account.”

Source: Taipei Times January 17, 2020 15:56 UTC