Ford Motor Co. and Zotye agreed to set up Zotye Ford Automobile Co., Ltd., a 50:50 joint venture that will offer all-electric vehicles for consumers in China under a new brand.
Pending regulatory approval, the JV will design, build, market, and distribute all-electric passenger vehicles for China, which ranks as the world’s leading electric vehicle market. The JV will be funded with a combined investment of 5 billion RMB ($756 million).
Ford announced earlier this year that at least 70 percent of Ford-branded vehicles sold in China will offer electrified powertrain options by 2025.
Zotye Ford plans to build a dedicated product research and development center as well as its own sales and services network. A new manufacturing plant for the JV will be built in Zhejiang Province.
In addition to the new JV, Ford and Zotye will explore offering mobility services to consumers in China as local demand for such services continues to grow.
Zotye Auto sold more than 22,500 all-electric vehicles year-to-date through October, representing a growth of more than 14 percent year-over-year.
Ford already operates vehicle joint ventures with Changan Ford Automobile Corp., Ltd. and Jiangling Motors Corp.