Aston Martin, LeEco to develop electric car

Aston Martin will set up a venture with Chinese consumer electronics group LeEco Holdings Co Ltd to jointly develop the British luxury car brand's first electric vehicle, an example of the deepening ties between the technology and automotive industries.

Companies like Alphabet Inc and LeEco are developing automotive expertise because they want to broaden their reach beyond computers and cell phones into cars, while automakers want Internet connectivity to give drivers live traffic updates and infotainment.

Aston Martin and LeEco said they plan to develop an electric car based on the British automaker's Rapide S model before developing other potential electric vehicles, including for LeEco. Financial terms of the transaction were not disclosed.