Apple once had eyes on developing an autonomous vehicle, but dropped the project after several years. Now one of the main assemblers of Apple iPhones is teaming up with Fiat Chrysler Automobiles NV to take on Tesla in the electric vehicle (EV) market in China.
Hon Hai Precision Industry Co. has a 50% stake in the new venture, with Fiat Chrysler holding the other 50%. While they have yet to formally sign the agreement, which is expected to happen in the coming weeks, their plans call for developing and manufacturing EVs in China, before eventually exporting them to other markets in the future.
Hon Hai not only manufactures iPhones for Apple, but they also manufacture MacBooks, as well as Playstations for Sony. Leveraging their expertise in precision manufacturing and supply chain management, Hon Hai is expecting to eventually have their automotive business make up 10% of their revenue (via Bloomberg).
On the other hand, Fiat Chrysler is hoping to grow their market share while taking on Tesla in the EV market in the world. In 2018, Fiat Chrysler held just a 1% market share in China. That compares to the likes of Ford and General Motors each with 2.3% and 13.8% respectively.