Ford, Zotye Finalize Agreement for 50:50 EV-Focused Joint Venture
Ford Motor Company in November reached a definitive agreement with Zotye that officially establishes the Zotye Ford Automobile joint venture. The two companies reached a Memorandum of Understanding in August, and the agreement proper, pending regulatory approval, will see them join forces in the effort of building fully-electric passenger vehicles and offering additional mobility services.
“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,” said Peter Fleet, Ford group vice president and president, Ford Asia Pacific, who was in Beijing last month to sign the agreement alongside Tech-New Group Ltd. Chairman and Zotye Auto Board Director Ying Jianren.
“We will be exploring innovative vehicle connectivity and mobility service solutions for a new generation of young city-dwelling Chinese customers,” Fleet added.
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“This is an important day for Zotye as we partner with Ford to help advance the growth of the Chinese auto industry,” said Ying. “We will work closely together to help meet Chinese consumers’ growing demand for electric vehicles.”
The joint venture will utilize a combined investment of 5 billion RMB (approximately $756 million USD) to, among other things, build a dedicated R&D center, establish its own sales and service network, and construct a new manufacturing facility in the Zhejiang Province.
The joint venture builds upon Ford’s announced plans for 70% of all vehicles sold in the country by 2025 to be offered with electrified powertrain options.