Traditional car companies are accelerating their transformation, and FCA intends to acquire FF electric vehicles

In order to catch up with the window period for the launch of electric vehicles, traditional car companies are accelerating their transformation. In addition to independent research and development, they are also extending an olive branch to new car-making forces.

In October, Fiat-Chrysler was reportedly in talks with at least two electric vehicle startups, including Faraday Future and Seres (an electric vehicle startup owned by automaker Sokon), about using their technology to build electric vehicles.

In response, a spokesman for FCA said the company "does not comment on potential business relationships." Fiat-Chrysler CEO Mike Manley also admitted to investors in October that he was willing to use other companies' electric vehicle technology to produce electric vehicles.

Joining forces with Fiat Chrysler will help ease the financial pressure on these two electric vehicle startups. Fiat Chrysler previously announced that it and PSA Peugeot Citroen will establish a new joint venture to create the world's fourth largest automobile group.

FF has experienced two major financial crises since its establishment. The launch of its first car failed. In order to alleviate the capital deficit, it also reported the sale of land/office buildings and the layoff of hundreds of employees. After eliminating the negative impact of Jia Yueting, FF is currently raising $850 million in financing to sprint for the production of its first FF91 luxury SUV by the end of next year.

The funding problems faced by FF are also problems faced by electric vehicle startups such as Seres. The company also stopped its plan to launch an electric SUV in the United States earlier this year and laid off hundreds of employees. The company has since adjusted its business to focus on powertrain technology development and sales. Recently, the company has also signed an agreement with BYD to develop electronic products such as motor controllers.

Although it has identified the source of technology and locked in the direction of cooperation, Fiat Chrysler is also cautious about becoming a vassal of companies that own core technologies.

The report quoted an informed employee as saying that the cooperation between FF and Fiat Chrysler can be traced back to April this year. FF has now modified a Fiat Chrysler car with its electric drive system technology and has conducted road tests in October.

Although FF's electric powertrain helped GM build its first car, the EV1, and has experience in landing, Fiat-Chrysler is still playing a balancing act and has not yet decided who will be the final supplier. According to two current employees, Seres was recently asked to install its own electric powertrain on two FCA vehicles.

However, Fiat-Chrysler's approach may also be worth learning from for those car companies that are in a hurry. Cooperating with electric car start-ups that have already conducted technical research can relieve financial pressure and verify the implementation of technology. It can also save car companies' R&D time and help companies transform into electrification. However, the problem is how the two sides can run in during the cooperation process and how car companies can take the initiative in technology. These may be issues that many car companies need to study in the future.