News on December 4, according to multiple media reports,Saudi Arabia and Foxconn Technology Group are negotiating the formation of an electric vehicle joint venture, which may also promote Saudi Arabia’s plan to achieve economic diversification.According to people familiar with the matter, the Saudi Arabian Public Investment Fund (“Saudi PIF”) manages approximately US$450 billion in assets. The fund will create an entity company called Velocity and become a major shareholder of the company.
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In addition, Foxconn will provide software, electronic devices and electrification architecture for the company’s electric vehicles, and will hold a minority stake.
Specific to the product,The new joint venture between Foxconn and Saudi Arabia may use BMW’s authorized platform to manufacture electric vehicles. It is reported that BMW previously licensed its X5 platform to the VinFast brand in Vietnam.
With the transformation of traditional automakers to electrification, the development of new platforms has brought high costs, and the authorization to use the rights of other brand platforms will greatly offset the cost burden caused by research and development.
It is worth noting that this is not the first time Saudi PIF has deployed electric vehicles. In November of this year, the Indonesian Ministry of Investment announced that Foxconn would invest in Indonesia’s electric vehicle industry. The two parties will sign a memorandum of understanding within this year.
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