Fiat Chrysler Automobiles N.V. (FCA) confirmed that it is in discussions with Hon Hai Precision Ind. Co., Ltd. (Foxconn) regarding the potential creation of an equal joint venture to develop and manufacture in China new generation battery electric vehicles and engage in the IoV (Internet of Vehicles) business.

The proposed cooperation, initially focused on the Chinese market, would enable the parties to bring together the capabilities of two established global leaders across the spectrum of automobile design, engineering and manufacturing and mobile software technology to focus on the growing battery electric vehicle market.

The two 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.

There is no assurance that final binding agreements will be reached or will be reached in that timeframe.

Founded in 1974, Foxconn achieved NT$5.2 trillion (US$174 billion) in revenue in 2018, and was ranked 24th among the Fortune Global 100 and 105th among the Forbes Global 2000. Foxconn is one of Apple’s key manufacturing partners.