Fiat Chrysler Confirms Talks With Foxconn On Chinese Electric Vehicle JV

(RTTNews) - Fiat Chrysler Automobiles N.V. (FCAU) confirmed Friday that it is in discussions with Hon Hai Precision Ind. Co., Ltd., better known as Foxconn, to create a possible equal joint venture to develop and manufacture electric vehicles in China. The joint venture could engage in the Internet of Vehicles business.

The companies are in the process of signing a preliminary agreement which will govern further discussions aimed at reaching final binding agreements in the next few months, Fiat Chrysler said in a statement. However, there is no assurance that final binding agreements will be reached.

Last month, Fiat Chrysler Automobiles and Peugeot S.A. agreed on a 50/50 merger of their businesses. At closing, Groupe PSA shareholders would receive 1.742 shares of the new combined company for each share of Groupe PSA, while FCA shareholders would have 1 share of the new combined company for each share of FCA.