Ford and China’s Zotye Automobile in Anhui Province signed a memorandum to build electric cars in China. The document calls for the creation of a 50/50 joint venture to manufacture electric cars in the world’s largest emerging car market, and sell them under a Chinese brand name.
The event shows Ford’s commitment to both the electric vehicles and Chinese market. In a press release, the Blue Oval said it anticipates the market for “new energy vehicles” in China will reach 6 million units annually by 2025, including 4 million all-electric cars.
The Chinese government began motivating new energy vehicles several years ago to resist horrible air pollution, but sales have only really picked up over the past decades. A large mount of those sales have been plug-in hybrids that, due to China’s limited charging infrastructure, may not get plugged in very often, or small electric vehicles with limited range.
Ford already had plans to expand sales of electric cars, but the joint venture with Zotye Auto shows a stronger commitment to those plans. In April, Ford said it that by 2025 it would supply hybrid or all-electric versions of every model built in China. But it also said it would take a cautious approach, due to uncertain consumer demand and probable changes in government policy.
Meanwhile, Ford is going to launch an electric SUV with a 300-mile range in America, and a gaggle of new hybrids too. The automaker also has cooperation with DHL in Germany on electric delivery vans. It’s a major change for a company that hasn’t paid much attention in all-electric cars before, until recently. Ford’s only current all-electric car is the unloved Focus Electric, which only has a slow sale.
Tags: auto market news, electric car, Ford, joint venture, new energy vehicle, Zotye Auto
