Automotive giant Stellantis and Taiwanese iPhone assembly firm Foxconn have announced that they are to form a joint venture aiming to supply in-car and car connectivity technology across the auto industry.
Mobile Drive, Stellantis, Foxconn
Source: Stellantis
The two companies signed a non-binding Memorandum of Understanding to form a 50-50 joint venture called Mobile Drive. The Netherlands-based partnership will operate as an automotive supplier with a focus on infotainment, telematics and cloud service platform development.
The aim is to provide software systems and related hardware to Stellantis and other interested carmakers.
The software is to include AI-based applications, 5G communication, over-the-air upgrades to services, opportunities for e-commerce as well as smart cockpit integrations to connect software and apps to the vehicle's wider systems.
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Carlos Tavares, CEO, Stellantis
Carlos Tavares has been Stellantis CEO since January 2021. He was previously Chairman of the Managing Board of Groupe PSA since 2014. Source: Alexander Migl
Stellantis CEO Carlos Tavares described the joint venture as being one part of the group's business plan, which is expected late this year or early 2022.
"Today, there’s something that matters just as much as beautiful design or innovative technology, it’s how the features inside our vehicles improve the lives of our customers," said Tavaresin a press release.
"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."
The partnership however appears to be less extensive than markets were anticipating. Last year, Stellantis - which was then Fiat Chrysler - announced plans to form a joint venture with Foxconn's parent company Hon Hai Precision Industry to build electric vehicles and internet-connected autos for the Chinese market.
The deal also leaves the unanswered question on how Stellantis is planning to achieve one of its primary goals - a relaunch in Asia, where it currently makes less than 3% of its revenues.
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Young Liu, CEO, Foxconn
Young Liu was made Chairman of the Foxconn Technology Group in 2019 having joined the company in 2007 as a Special Assistant to the company's founder. Source: Foxconn
Foxconn Chairman Young Liu said that future vehicles would be increasingly driven and defined by software to connect drivers and passengers with the car.
"Mobile Drive will meet and exceed these expectations with teams of designers and software and hardware engineers,” he said.
"This is a natural extension of Foxconn’s global leadership in the development and application of smart technologies to improve the quality of life of consumers around the world."
Yves Bonnefont, Chief Software Officer at Stellantis, said that Mobile Drive would give the automaker "the agility we need to provide the digital experience of the future at the speed our customers demand."
The financial details of the deal have not been disclosed.
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