Free Trial

Fiat Chrysler in talks with Foxconn to develop electric cars

MILAN (AP) — Fiat Chrysler is in talks with the Taiwanese company Foxconn to develop and manufacture battery-powered vehicles, the U.S.-Italian automaker said Friday.

Fiat Chrysler is in the process of merging with France's PSA Peugeot, which is 12% owned by Chinese company Dongfeng Motor Co. Both Fiat Chrysler and Peugeot have lagged in developing electric powertrains and also have been struggling to increase sales in China, the world's biggest auto market.

It was unclear what impact Fiat Chrysler's proposed joint venture with Foxconn, formally known as Hon Hai Precision Ind. Co., Ltd., would have on the wider merger, which is expected to be completed in the next year or so.

If a deal with Foxconn is reached, a joint venture would focus first on China, the biggest market for electric cars with 1.2 million vehicles sold last year - half the global total.

"The proposed cooperation ... would enable the parties to bring together the engineering and manufacturing and mobile software technology to focus on the growing battery electric vehicle market,'' Fiat Chrysler said in a statement.

Talks were aimed at reaching a binding agreement ‘’in the next few months,'' the company said.

Automakers around the world have announced a series of electric vehicle partnerships to share the soaring cost of technology development.

Companies including General Motors Co. and Toyota Motor Co. have electric vehicle joint ventures with Chinese partners to take advantage of their experience at making low-cost vehicles.

The Chinese government has a credit-based system that encourages automaker to sell electric vehicles, leading to a proliferation of brands. But industry analysts expect high development costs to drive many of them to merge.

The trend has led to a complicated mix of ties among competitors.

Daimler AG’s Mercedes Benz has electric vehicle joint ventures with both BYD Auto, one of the biggest global makers of battery-powered vehicles, and rival Geely Holding, which is best known abroad as the owner of Sweden’s Volvo Cars. Geely also has two separate electric brands, Geometry and Volvo’s Polestar.

Beyond its stake in PSA Peugeot, Dongfeng also has joint ventures with Nissan Motor Co., Kia Motor Co. and Groupe Renault, all of whose product lineups include electric models.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Beginner's Guide To Retirement Stocks Cover

Enter your email address and we'll send you MarketBeat's list of seven best retirement stocks and why they should be in your portfolio.

Get This Free Report
Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
General Motors (GM)
3.9601 of 5 stars
$53.360.4%1.12%7.69Hold$53.35
Toyota Motor (TM)
3.4677 of 5 stars
$170.23-0.1%3.62%7.53HoldN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Hot Growth Stocks to Watch Right Now!
Don’t Miss These Top 3 Defense Stocks Set To Gain
Triple-Digit Gains: These 4 Nuclear Stocks Have Even More Upside Ahead

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines