By Mauro Orru

Stellantis NV and Apple Inc. supplier Foxconn Technology Group have agreed to establish a vehicles joint venture with a focus on software that will bid for vehicle-program contracts with Stellantis and other auto industry companies.

The auto maker, created through the merger of Fiat Chrysler Automobiles NV and Peugeot SA, said Tuesday that it has signed a nonbinding memorandum of understanding with Foxconn, formally known as Hon Hai Precision Industry Co. and its subsidiary FIH Mobile Ltd.

The evenly split joint venture between Stellantis and Foxconn, dubbed Mobile Drive, represents an effort by the two companies to accelerate the development of in-vehicle user experiences based on advanced consumer electronics.

Netherlands-based Mobile Drive will operate as an automotive supplier and bid to supply software and related hardware for Stellantis and other interested auto makers.

"Software is a strategic move for our industry and Stellantis intends to lead with Mobile Drive--a company that will enable the swift development of connectivity features and services that mark the next great evolution of our industry, just as electrification technology has," Stellantis Chief Executive Carlos Tavares said.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

May 18, 2021 06:26 ET (10:26 GMT)

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