Ford to Pursue JV Partner in China for All-Electric Vehicles
With China’s emergence as both one of the world’s largest consumer automobile markets and a country whose rapid expansion has noticeably lead to stifling air pollution, Ford’s recent decision to find a JV partner for all electric vehicles in that country makes tremendous business sense.
For its part, Ford has already invested $4.5 billion to make electric vehicles that offer customers more capability, productivity and performance.
Now, it signed of a Memorandum of Understanding (MOU) with Anhui Zotye Automobile Co., Ltd., a major manufacturer of zero-emission all-electric vehicles in China. The reason for this partnership is to build on Ford’s global promise to provide customers with affordable and capable electric vehicles and to help create a more sustainable auto industry, by improving air quality and addressing climate change.
“Electric vehicles will be a big part of the future in China and Ford wants to lead in delivering great solutions to customers,” said Peter Fleet, Ford group vice president and president, Ford Asia Pacific. “The potential to launch a new line of all-electric vehicles in the world’s largest auto market is an exciting next step for Ford in China.”
The main goal of the partnership is to explore the establishment of a joint venture for the development, production, marketing and servicing of a new line of all-electric passenger vehicles in China.
China is the fastest-growing market in the world for new energy vehicles (NEVs). Ford expects the market for NEVs in China to grow to six million units per year by 2025 and approximately two thirds of the vehicles are expected to be all-electric.
Zotye Auto is a pioneer in the Chinese all-electric vehicle segment, being one of the first automakers to produce all-electric passenger vehicles in the country and is the market leader in China’s all-electric small vehicle segment. In just July of 2017, Zotye sold more than 16,000 all-electric vehicles, representing a growth of 56 percent compared to July of 2016.
Vehicles produced by the joint venture would be sold under an indigenous brand owned by the new partnership and would aim to capture a sizeable share of China’s all-electric passenger vehicle market. The new 50:50 joint venture would also represent a major step forward in building on Ford’s electrification initiatives and significantly expand Ford’s footprint in China.
“The MoU between Zotye Auto and Ford opens the door for us to explore our cooperation in the development of clean energy vehicles,” said Jin ZheYong, chairman and president, Anhui Zotye Automobile Co., Ltd., based in Huangshan, Anhui province.
Category: General Update, Green, News
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