Stellantis, Foxconn Launch Software-Focused Vehicles JV -- Update
May 18 2021 - 7:43AM
Dow Jones News
--Stellantis, Foxconn set up joint venture Mobile Drive
--Mobile Drive will operate as automotive supplier, supplying
software and related hardware for Stellantis and other auto
makers
--Partnership will focus on information and entertainment
systems, telematics and cloud service platform development
By Mauro Orru
Stellantis NV and Apple Inc. supplier Foxconn Technology Group
have agreed to establish a vehicles joint venture with a strong
focus on software that will bid for contracts with Stellantis as
well as other auto industry players.
The auto maker, created through the merger of Fiat Chrysler
Automobiles NV and Peugeot SA, said Tuesday that it has signed a
nonbinding memorandum of understanding with Foxconn, formally known
as Hon Hai Precision Industry Co., and its subsidiary FIH Mobile
Ltd.
The evenly-split joint venture between Stellantis and Foxconn,
dubbed Mobile Drive, represents an effort by the two companies to
accelerate the development of in-vehicle user experiences based on
advanced consumer electronics.
Netherlands-based Mobile Drive will operate as an automotive
supplier and bid to supply software and related hardware for
Stellantis and other auto makers.
"Software is a strategic move for our industry and Stellantis
intends to lead with Mobile Drive--a company that will enable the
swift development of connectivity features and services that mark
the next great evolution of our industry, just as electrification
technology has," Stellantis Chief Executive Carlos Tavares
said.
Foxconn had previously partnered with Fiat Chrysler on electric
vehicles, before the latter merged with Peugeot.
The partnership with Stellantis will focus on information and
entertainment systems, telematics and cloud service platform
development with software including applications based on
artificial intelligence and 5G technology.
"The vehicles of the future will be increasingly software driven
and software defined. Customers today and, in the future, demand
and expect ever increasing software driven and creative solutions
to connect the drivers and passengers with the vehicle inside and
out," Foxconn Chairman Young Liu said.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
May 18, 2021 07:28 ET (11:28 GMT)
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