Ford has announced a new joint venture with Chinese automaker Zotye on affordable electric vehicles for the Chinese market.
Named Zotye Ford Automobile, the venture will see the two automakers develop and manufacture electric vehicles for a new brand. Ford and Zotye will be investing a total of 5 billion RMB (about $756 million) on this venture. Part of that investment will go towards a new manufacturing plant in the Zhejiang Province. The two automakers will also work on mobility solutions.
“We are delighted to have signed this joint venture agreement with Zotye to form our third joint venture automotive company in China. Subject to regulatory approval, Zotye Ford will introduce a new brand family of small all-electric vehicles," said Peter Fleet, Ford group vice president and president of the Asia Pacific region.
Zoyte knows a thing or two about selling EVs in China. The company has sold 22,500 small EVs within the first 10 months of the year. Zoyte is also very infamous for building the T700 which is a copy of the Porsche Macan crossover.
Press Release is on Page 2
FORD AND ZOTYE SIGN DEFINITIVE JV AGREEMENT IN CHINA TO MEET GROWING DEMAND FOR ALL-ELECTRIC VEHICLES
- Ford and Zotye signed a definitive joint venture agreement to establish Zotye Ford Automobile Co. Ltd., a new 50:50 joint venture that will offer a range of stylish and affordable electric vehicles for consumers in China
- Pending regulatory approval, the new JV will develop and manufacture all-electric vehicles under a new Chinese brand
- Zotye Ford also plans to build a new manufacturing plant in Zhejiang Province. A new dedicated sales and service network also will be established
- Ford and Zotye also will explore the opportunity to offer new mobility services in China to help provide solutions for emerging transportation challenges
Beijing, Nov. 8, 2017 -- Ford Motor Company and Zotye today reached a definitive agreement to establish Zotye Ford Automobile Co., Ltd., a new 50:50 joint venture that will offer a range of stylish and affordable all-electric vehicles for consumers in China under a new indigenous brand.
The agreement was signed in Beijing today by Peter Fleet, Ford group vice president and president, Ford Asia Pacific, and Ying Jianren, chairman of Tech-New Group Ltd. and board director of Zotye Auto.
Pending regulatory approval, the new JV will design, build, market and distribute all-electric passenger vehicles for China, the world’s leading electric vehicle market. The establishment of the JV is a key step by Ford towards realizing its vision of a cleaner, more environmentally-sustainable future. The new JV will leverage a combined investment of 5 billion RMB (approximately U.S. $756 million).
The new JV builds upon Ford’s ambitious China electrification strategy. Ford announced earlier this year that at least 70 percent of Ford-branded vehicles sold in the country will offer electrified powertrain options by 2025.
Zotye Ford plans to build a dedicated product research and development center as well as its own sales and services network. A new manufacturing plant for the JV will be constructed in Zhejiang Province. The all-electric vehicles produced by the JV will be sold under a new Chinese brand designed to meet Chinese consumers’ aspirations for electric vehicles.
“We are delighted to have signed this joint venture agreement with Zotye to form our third joint venture automotive company in China. Subject to regulatory approval, Zotye Ford will introduce a new brand family of small all-electric vehicles," Fleet said. "We will be exploring innovative vehicle connectivity and mobility service solutions for a new generation of young city-dwelling Chinese customers."
In addition to the new JV, Ford and Zotye will explore offering mobility services to consumers in China as local demand for such solutions continues to grow.
Through this new JV, Ford commits to actively support the advancement of a more environmentally sustainable auto industry in China through local research and development as well as domestic production of all-electric vehicles.
Zotye Auto is a pioneer in the Chinese all-electric vehicle segment. It is the market leader in China’s all-electric small vehicle segment and sold more than 22,500 all-electric vehicles year-to-date through October, representing a growth of over 14 percent year-over-year. The JV will benefit from Zotye’s expertise in designing and commercializing EVs in China, and Ford’s global product development and technology capabilities.
“This is an important day for Zotye as we partner with Ford to help advance the growth of the Chinese auto industry,” said Zotye’s Ying. “We will work closely together to help meet Chinese consumers’ growing demand for electric vehicles.”
Upon its establishment, the new JV will expand Ford’s footprint in China. Ford already operates successful vehicle joint ventures with Changan Ford Automobile Corporation, Ltd. and Jiangling Motors Corporation. Ford will continue working closely with its JV partners to develop and manufacture New Energy Vehicles to meet rising consumer demand in China during the impending electrification phase of the Chinese auto industry.