The joint venture does not have an OEM strategy for Baidu Byton. Geely Foxconn cooperates

The paper heard from individuals familiar with the matter that the joint venture set up between Zhejiang Geely Holding Company Co., Ltd. (‘Geely Holdings’) and Foxconn Technology Group (‘Foxconn’) is not for Baidu and Geely. OEM strategy of the joint venture firm. There is, of course, no OEM strategy for Byton, a car company that a few days ago signed a strategic partnership framework agreement with Foxconn.

The person familiar with the matter also disclosed that a management committee would be set up by the joint venture firm to be responsible for the regular activities of the company. Foxconn, among them, has the right to appoint or change the CEO of the group, and Geely Holdings has the right to nominate and change the CFO of the company. The joint venture currently has no intentions, nor does it have an IPO schedule, to add new investors.

Geely Holdings and Foxconn jointly concluded a strategic partnership deal earlier today. The two parties will set up a joint venture to offer OEM manufacturing and customized consultancy services to multinational automobile and travel firms, including, but not limited to, automotive automobiles or parts, intelligent control systems, the automotive ecosystem, and the whole electric vehicle industrial chain, etc.

The joint venture corporation will launch the labor model ICT (Information and Communication Technology) division to help consumer companies transcend the existing model of the automobile sector, facilitate the transition to an advanced and effective supply chain and business model production system, and lead to electrification, intelligence, and networking and sharing.

According to the deal, 50 percent of the shares would be owned by both sides of the joint venture. There are five members on the board of directors of the joint venture firm. Among them, three directors were appointed by Foxconn, two directors were appointed by Geely Holdings and Foxconn appointed the chairman.

Healthy news about Geely Holdings has circulated lately.
Two days ago, with Baidu being a strategic partner of Baidu Electric Vehicle Group, Geely Holdings announced the establishment of a smart electric vehicle company. Geely’s newest pure electric architecture, SEA Haohan Intelligent Evolution Experience Architecture, will be the foundation of collaboration between the two groups.

In the automotive sector, Foxconn is also making more layouts. Foxconn and Byton Motors Nanjing Economic and Technical Growth Zone signed a framework strategic partnership agreement on January 4. In order to fully facilitate the mass production of Byton’s first M-Byte platform, Foxconn will have advanced manufacturing technologies, operational management expertise and industry chain tools and aim to attain mass production of M-Byte by the first quarter of 2022.