Fiat Chrysler and Foxconn, Coming From Behind.

February 18, 2020

Fiat Chrysler and Foxconn, Coming from Behind.

Steve Sell 14/02/2020 Electric Car Series.


Fiat Chrysler and Foxconn the Technology Group are planning to develop and build electric vehicles in China. This was announced 16 January 2020.

Fiat Chrysler Automotive FCA  are starting a long way behind other manufacturers in China.

The initial focus will be on China, because China is one of the lagest EV markets but with the view that vehicles could be exported in the future.

Fiat Chrysler  and Foxconn,  are desperate to catch up to other players in the market for battery-powered cars. The company is set to launch its first electric only model this year 2020.

It will be called the 500 Small car.

iPhone Manufacturer.

Foxconn is a Taiwanese electronics company that manufactures iPhone under contract to Apple.

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Foxconn said in Taiwan that it was establishing a joint venture with Fiat Chrysler to develop and produce electric vehicles.

iPhone manufactiurer, Foxconn would hold around 40% ownership in the joint venture

A spokes person from Foxconn stated that the company is looking to expand beyond the low margin electronics industry in a move to boost profitability as a result they would provide technical expertise to FCA.

The merger would bring the strength of the parties to bring together.

These strengths are the capabilities of two established leaders in the fields of vehicle design, engineering, sales and manufacturing and the technical expertise in software and battery hardware.

Because Foxconn is the biggest assembler of Apple iPhones it has developed technical capabilities in manufacture and battery technology.

Sales of iPhones have been slowing as customers hold on to smartphones longer and competition heats up from android competitors and Chinese phone makers.

So Foxconn’s venture with Fiat Chrysler could boost efforts to sell electric powered vehicles into China.

The Chinese Government and Subsidies.

The Chinese government is encouraging global car companies to invest in the production of battery-powered cars to meet stricter government regulations.

Fiat Chrysler and Foxconn, have fallen behind its rivals in this space and has invested less in electric-­vehicle development.

The company faces stricter emissions standards and regulations in China, Europe and the USA, these countries make up the world’s largest market for battery-powered cars.

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Challenging Market.

China has been a challenging market for Fiat Chrysler.

Jeep, Fiat Chryslers global brand was slow to gain market share in China. can help with finance for electric car loans.

Foxconn’s chairman, Young Liu, said that electric vehicles were an area the company was focusing on for future growth and increased profitability.

Falling Vehicle Sales.

Vehicle sales fell in China for a second consecutive year during 2019,  Motor industry executives are predicting another tough year ahead in 2020,

This is not good news for the motor industry as China is the world’s largest car market.

General Motors has reported an annual sales decline in China, Sales were down 15 per cent in 2019.

General Motors (GM) is the second biggest carmaker in China by number of sales.  Volkswagen is the largest manufacturer.

Fiat Chrysler doesn’t disclose Chinese market share or sales. This is because sales have been sluggish and they do not wish to disclose how bad sales are.

The Chinese government is pressuring car companies to introduce battery-powered cars, sales of electric vehicles have dropped again in 2019 because  the government has reduced subsidies.