Skip to content

November 9, 2017

Ford will build EVs with Chinese automaker in $765 million deal

by John_A

Over the last few months, China has been making plans and deals to wean its country’s cars off fossil fuels. In July, Daimler agreed to pair up with Chinese automaker BAIC to invest $735 million in EV infrastructure. Ford just entered its own venture, a 50-50 partnership with manufacturer Zotye Auto for a combined investment of $756 million to produce electric cars.

Once the Chinese government approves the deal, the enterprise will build a manufacturing facility in the Zhejiang province to produce EVs under its new brand, Zotye Ford. As CNET points out, both parent companies signed an agreement back in August that paved the way for this partnership.

“Zotye Ford will introduce a new brand family of small all-electric vehicles,” Ford group VP Peter Fleet said in the statement. “We will be exploring innovative vehicle connectivity and mobility service solutions for a new generation of young city-dwelling Chinese customers.”

While China hasn’t set a specific deadline to ban fossil fueled cars, as France and UK expect to phase out by 2040, the clock is ticking. Foreign automakers have two choices: Pay a hefty 25 percent import tax on vehicles or partner with a local company to produce cars in the country. This gives manufacturers like Zotye experience (though that company in particular already produces electric and battery-powered vehicles) while granting outside conglomerates access to Chinese markets.

Companies are making deals to get a slice of the country’s EV pie ahead of time because, while its ratio of car owners is low (one in five people), China’s 1.4 billion-person population means nearly 300 million vehicles currently on its roads.

Source: CNET

Advertisements
Read more from News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: