By Martin Mou

Zhejiang Geely Holding Group and Foxconn Technology Group have agreed to establish an auto joint venture that will provide production and consulting services to global auto makers.

Geely Holding, the Chinese auto group that controls Volvo Cars, and Taiwan-based Foxconn, a major supplier for Apple Inc., will each hold an equal 50% stake in the new company, Geely and Foxconn said Wednesday in a joint statement.

Foxconn Chairman Young-way Liu said the new alliance represents a milestone in cooperation between the automotive industry and the information, communication and technology industry.

The two companies said the joint venture will introduce ICT production practices to improve manufacturing efficiency at car makers.

Geely and Foxconn didn't disclose the financial details or the operation timeline of the joint venture.

Geely Holding, which also owns Hong Kong-listed Geely Automobile Holdings Ltd., earlier this month tied up with Chinese search giant Baidu Inc. to manufacture electric cars.

Write to Martin Mou at martin.mou@wsj.com

(END) Dow Jones Newswires

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