Ford inks MoU with China’s Zotye Auto for EV JV

Ford has signed a Memorandum of Understanding (MoU) with Chinese EV maker Anhui Zotye Automobile to set up a 50:50 joint venture for developing, producing, marketing and servicing of all new line of all-electric passenger vehicles in China. The vehicles produced would be sold under an indigenous brand owned by the new JV. The plan is to capture a sizeable share of China’s all-electric PV market.

Zotye Auto, a pioneer in the Chinese all-electric vehicle segment, was one of the first automakers to produce all-electric PVs in the country. In July 2017, it sold over 16,000 all-electric vehicles, representing a growth of 56 percent year-over-year.

“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, VP, Ford Group and president, 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.”

With China being the one of the fastest-growing market in the world for new energy vehicles (NEVs), Ford expects the market to grow to six million units per year by 2025, of which approximately 4 million vehicles will be all-electric.

Commenting on the MoU, Jin ZheYong, chairman and president, Anhui Zotye Automobile, said “The MoU between Zotye Auto and Ford opens the door for us to explore our cooperation in the development of clean energy vehicles. 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.”

Ford’s future EV model plan

As part of its global electrification commitment, Ford has invested $4.5 billion to make electric vehicles and 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. The American automajor also recently announced an ambitious China electrification strategy and confirmed that 70 percent of all Ford vehicles sold in China will have electrified powertrain options by 2025.

The new 50:50 joint venture would be a major step forward in building on the company’s electrification initiatives and will significantly expand its footprint in China, along with its successful joint ventures – Changan Ford and Jiangling Motors Corporation.

Additional details, including information about the brand, products and production volumes, are set to be announced at a later date.