Ford looking to team up with Anhui Zotye
Ford Motors says it is may team up with China’s automaker Anhui Zotye Automobile Co in a joint venture to build electric passenger vehicles in China.
As China struggles with high pollution levels in major cities, it is now pushing plug-in vehicles and has poured tens of billion dollars into investment, research funding and subsidies.
Many automakers like Ford are taking advantage of China’s EV expansion and are hoping to tap into the world’s largest auto market. Tesla, Daimler AG and GM have already announced plans to build EVs in China.
China is hoping to see electric and plug-in vehicles to make up at least one-fifth of the country’s auto sales by 2025. Ford says the new energy vehicle market is expected to grow to 6 million vehicles per year by 2025. Four million are expected to be all-electric.
According to a statement released on Tuesday, this year, Ford sales in China are down 7 per cent. The company says it has signed a memorandum of understanding with Zotye Auto to build a new EV brand. Both companies will hold a 50 per cent stake in the new company.
No further information on financial commitments or a timeline for a firm decision on the JV was released.
In April, Ford announced plans to offer a hybrid of fully electric vehicle versions of all models built in China with another JV partner, Chongqing Changan Automobile Co Ltd.
At the time, it said it would take a cautious approach to the market due to consumer interest and government policy uncertainty.
Privately-owned Zotye sold over 16,000 EVs this year up to July, and posted a year-on-year growth of 56 per cent. The company also makes SUVs and cargo trucks.
Ford said details about the brand, products and production volumes will released at a later date, pending a final agreement and regulatory approvals.
