Ford and Zotye have signed a new agreement that will see the two companies team up together to produce electric vehicles for buyers in China. The new 50:50 joint venture establishes the Zotye Ford Automobile Co. Ltd. that will have a combined investment of 5 billion RMB ($756 million).
The new partnership builds on Ford’s electrification plans. Earlier this year Ford announced that at least 70 percent of the vehicles it sells in China will have an electrified powertrain by 2025.
Zotye Ford will produce the vehicles at a new plant in Zhejiang Province and sell them under a new Chinese brand.
“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,” stated Peter Fleet, Ford group vice president and president, Ford Asia Pacific. “We will be exploring innovative vehicle connectivity and mobility service solutions for a new generation of young city-dwelling Chinese customers.”