By Yilei Sun and Yimou Lee
It marks the latest move by Foxconn, a major Apple Inc supplier, into autos after a tie-up with Chinese electric car startup Byton and comes amid reports that Apple is likely to launch a self-driving electric car by 2024.
Geely, which owns Volvo Cars and holds 9.7% of Daimler AG, is keen to improve the capacity utilisation rate of its plants around China, said the sources, who were not authorised to speak to media and declined to be identified.
Its main listed company, Geely Automobile, has the capacity to build more than 2 million vehicles a year but sold only some 1.32 million in 2020. Geely Automobile plans to issue shares on mainland China’s STAR board this year.
Foxconn, whose official name is Hon Hai Precision Industry Co Ltd, said in October it aimed to provide components or services to 10% of the world’s EVs by 2025-2027.
Geely shares climbed 1% on the news. Foxconn shares finished 2.4% higher prior to the companies’ announcement.
(Reporting by Yilei Sun and Yimou Lee; Editing by Edwina Gibbs)