The Chinese electric vehicle space is getting crowded. Given the scope and opportunity presented by China, which boasts more than half of global EV sales, it's only logical that major automakers will make a beeline to the burgeoning market.
Fiat Chrysler Automobiles NV FCAU said Friday that it is in talks with Hon Hai Precision Industry Co., Ltd. HNHPF, more commonly known as Foxconn, to create a joint venture to manufacture new generation electric vehicles in China.
The companies also plan to engage in the Internet of Vehicle, or IoV, business, according to a press release.
IoV, according to WhatIs.com, is a distributed network that supports the use of data created by connected cars and vehicular ad hoc networks, or VANETs. It helps vehicles communicate in real time with drivers, pedestrians, other vehicles, roadside infrastructure and fleet management systems.
The companies said they plan to initially focus on the Chinese market, drawing on their expertise in automobile design, engineering and manufacturing and mobile software technology.
Fiat Chrysler and Foxconn are currently engaged in the process of signing a preliminary agreement and expect to sign the final binding agreements in the next few months.
"There is however no assurance that final binding agreements will be reached or will be reached in that timeframe," according to Fiat Chrysler and Foxconn.
Fiat Chrysler shares were trading down 0.5% at $13.82 at the time of publication Friday.
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