It is possible to sign a deal before the end of the year.
Foxconn Technology Group has been in discussions with Saudi Arabia about a possible joint venture company that will focus on electric vehicles. Although the information isn’t yet official, Automotive News has a report that cites “people who are familiar with the matter”. They told the publication that Saudi Arabia’s Public Investment Fund will create a new company called Velocity. This new joint venture should have a majority stake.
The $450 billion worth of assets currently managed by the investment fund is expected to increase as the kingdom diversifies its economy. According to sources, Foxconn (the company that makes iPhones) will supply software, electronics and electrical architecture for new electric cars that will be built in Saudi Arabia. Foxconn will also hold a minority share in the joint venture.
The report also claims that the new company plans to use BMW chassis to make EVs. It is expected that the two sides will sign a contract before the end the year. However, this report from Automotive News is the only information available on the project.
BMW will likely provide an older electric architecture for the joint venture company. The automaker won’t be the only one to license its platforms to another manufacturer. VinFast, a Vietnamese company, uses an older BMW X5 platform for its President SUV. The new Land Rover Range Rover also offers the option of a 4.4-liter twin turbo V8 from BMW.
Foxconn’s first three vehicles, Model C, Model E and Model T, were developed in collaboration with Yulon Motor Co Ltd in Taiwan. A former Lordstown Motors factory in the United States was recently purchased by the tech giant.