Ford continues global electrification expansion into China
Ford Motor Company has signed a Memorandum of Understanding with Huangshan, Anhui province-based Anhui Zotye Automobile Co., Ltd., a manufacturer of zero-emission all-electric vehicles in China. The goal of the MoU 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.
“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,” said Peter Fleet, Ford Group Vice President, and President for Ford Asia Pacific. “Electric vehicles will be a big part of the future in China, and Ford wants to lead in delivering great solutions to customers.”
Ford, which has other joint ventures in China that include Changan Ford and Jiangling Motors Corporation, said 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, of which approximately 4 million vehicles will be all-electric.
Zotye Auto was one of the first automakers to produce all-electric passenger vehicles in China, and it sold more than 16,000 all-electric vehicles through July this year, representing a growth of 56% year-over-year.
Vehicles produced would be sold under an indigenous brand owned by the new joint venture and would aim to capture a sizeable share of China’s all-electric passenger vehicle market. Additional details, including information about the brand, products, and production volumes, will be announced at a later date, pending a final definitive agreement and regulatory approvals.
“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, Zotye Auto. “This presents us with an exciting opportunity to leverage each other’s strengths in achieving a win-win situation for both parties’ growth in the fast-evolving Chinese electric vehicle market.”
As part of its global electrification commitment, Ford has invested $4.5 billion to make electric vehicles that offer customers more capability, productivity, and performance. Ford plans to introduce 13 new electrified vehicles globally in the next five years, including an all-electric small SUV to be sold in Asia, North America, and Europe. Ford also recently announced its China electrification strategy and says that 70% of all Ford vehicles sold in China will have electrified powertrain options by 2025.