The Byton M-Byte electric sports utility vehicle (SUV) is on display at the CES 2020 event in Las Vegas, Nevada, USA, on Sunday, January 5, 2020.
Bridget Bennett | Bloomberg | Getty Images
GUANGZHOU, China – Apple iPhone maker Foxconn has signed a contract with Chinese carmaker Byton to help roll out its first vehicle.
The move marks a major push by Foxconn into car manufacturing as it seeks to diversify its business beyond just collecting consumer electronics.
Foxconn, which trades Hon Hai Precision Industry Co. in Taiwan, its shares jumped over 4% on Tuesday after closing over 8% higher on Monday.
Byton, Foxconn and Nanjing Development Zone signed a strategic cooperation framework agreement Monday to complete Byton’s M-Byte SUV by the first quarter of 2022.
Foxconn will leverage its expertise in advanced manufacturing technology, operational management expertise and share business resources, according to a statement from the companies.
The deal could give Byton a lifeline that first appeared in M-Byte in 2018 but has struggled to ramp up production. China-based company Nanjing was forced to halt production in July and reorganize after the coronavirus outbreak infected the industry.
For Foxconn, the deal is a way to diversify its business. Last year, Foxconn launched a set of tools that would allow a company to design large parts of an electric car that would be made by a Taiwanese company. These devices include a chassis as well as software for the vehicle.
Foxconn has already been providing Tesla-specific tools including Tesla.
China’s electric vehicle market continues to show strong growth. Starting with Nio, Li Auto and Xpeng electric cars each mentioned in the last few days, delivery in 2020 to close the year with new monthly highs.