Ford and Zotye sign agreement in China to meet demand for all-electric vehicles
Ford Motor Company and Zotye reached an 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. The agreement was signed in Beijing 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 joint venture will design, build, market, and distribute all-electric passenger vehicles for China. The new agreement will leverage a combined investment of 5 billion RMB (approximately U.S. $756 million).
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 is expected to be constructed in Zhejiang Province. The all-electric vehicles produced by the agreement 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."
Additionally, Ford and Zotye will explore offering mobility services to consumers in China as local
“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.”