Ford’s electric car venture with Zotye to speed up US manufacturer’s expansion in China
New Zhejiang province factory to produce small all-electric vehicles
Ford has signed an agreement with Anhui Zotye Automobile to set up a 5 billion yuan (US$754 million) joint venture focusing on electric cars, in a substantial step towards tapping the mainland’s new energy vehicle segment.
A new factory will be established in Zhejiang province and a new sales and service network dedicated to the new cars will be created. The 50-50 venture, known as Zotye Ford Automobile, is subject to regulatory approval, Ford said on Wednesday.
Zotye, described by Ford as a market leader in China’s electric small vehicle segment, will become the US carmaker’s third major partner on the mainland, after Chongqing Changan Automobile and Jiangling Motors.
“Subject to regulatory approval, Zotye Ford will introduce a new brand family of small all-electric vehicles,” said Peter Fleet, the president of Ford in Asia-Pacific. “We will be exploring innovative vehicle connectivity and mobility service solutions for a new generation of young city-dwelling Chinese customers.”
The vehicles manufactured by the venture will be sold under a new brand name.
Ford joins global rivals such as General Motors and Volkswagen in vying for a share of the fast-growing new energy vehicle segment in the world’s largest car market. These big-name carmakers will also come up against Tesla, with the Silicon Valley-based electric carmaker also planning to set up a plant on the mainland.