Stellantis, Foxconn, Join Forces On Connected Car Tech

Automaker Stellantis has joined forces with Foxconn, the Taiwanese company that manufactures iPhones, to create in-car and connected-car technologies for the car industry.

The two companies announced Tuesday (May 18) they have formed Mobile Drive, a joint venture based in Stellantis’ home country of the Netherlands. With the 50-50 partnership, the companies plan to focus on “infotainment, telematics and cloud service platform development,” according to a Reuters report.

Financial terms of the deal were not disclosed. Stellantis Chief Software Officer Yves Bonnefont said in a Reuters interview that the decision to work with Foxconn was driven by the need to move quickly and tap into the best expertise around.

Stellantis Chief Executive Carlos Tavares told the news service the partnership with Foxconn was “a ‘must’ of our future strategic direction.”

But Reuters notes that the partnership seems less comprehensive than expected after “Fiat Chrysler, now part of Stellantis, said last year it was planning to set up a joint venture with Hon Hai Precision Industry, Foxconn’s parent company, to build electric cars and develop internet-connected vehicles in China.”

There’s also the question of how the deal will help Stellantis reach one of its top goals, relaunching in Asia, a market that accounts for less than 3 percent of its revenue.

Mobile Drive will function as an automotive supplier, providing software systems and hardware to Stellantis and any other car company who is interested, per Reuters.

The software will include artificial intelligence (AI)-based applications, 5G communication, eCommerce opportunities and smart cockpit integrations, connecting software and apps to the car’s wider systems.

Stellantis in April announced a partnership with Google through Fiat. The car marker, which also owns Chrysler, Dodge, Jeep, Ram and Maserati, has sold more than 3 million 500-level Fiats since 2007. With the Google integration, drivers will be able to interact with the voice, smartphone or Google Nest Hub-connected device in their homes.