Beijing, November 9, 2017
Ford Motor Company and Zotye have announced that they will establish a joint venture by the name of Zotye Ford Automobile Co Ltd. The companies reached a definitive agreement to establish the Jvin which both will have a 50 per cent stake. The company will offer a range of stylish and affordable all-electric vehicles for consumers in China under a new indigenous brand. The agreement was signed in Beijing by Peter Fleet, President, Ford Asia Pacific, and Ying Jianren, Chairman of Tech-New Group Ltd. and Board Director of Zotye Auto.
Pending regulatory approval, the new JV will design, build, market and distribute all-electric passenger vehicles for China, the world’s leading electric vehicle market. Zotye Ford is predicted to leverage a combined investment of 5 billion RMB (approximately USD 756 million).
The new JV builds upon Ford’s ambitious China electrification strategy. Ford announced earlier this year that at least 70 per cent of Ford-branded vehicles sold in the country will offer electrified powertrain options by 2025. Zotye Ford plans to build a dedicated product research and development centre as well as its own sales and services network. A new manufacturing plant for the JV will be constructed in Zhejiang Province. The all-electric vehicles produced by the JV will be sold under a new Chinese brand designed to meet Chinese consumers’ aspirations for electric vehicles.
“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," Fleet said. "We will be exploring innovative vehicle connectivity and mobility service solutions for a new generation of young city-dwelling Chinese customers."
Through this new JV, Ford commits to actively support the advancement of a more environmentally sustainable auto industry in China through local research and development as well as domestic production of all-electric vehicles.
Zotye Auto is a pioneer in the Chinese all-electric vehicle segment. It is the market leader in China’s all-electric small vehicle segment and sold more than 22,500 all-electric vehicles year-to-date through October, representing a growth of over 14 per cent YoY. The JV will benefit from Zotye’s expertise in designing and commercialising EVs in China, and Ford’s global product development and technology capabilities.
“This is an important day for Zotye as we partner with Ford to help advance the growth of the Chinese auto industry,” said Zotye’s Ying. “We will work closely together to help meet Chinese consumers’ growing demand for electric vehicles.”
Upon its establishment, the new company will expand Ford’s footprint in China. Ford already operates successful vehicle joint ventures with Changan Ford Automobile Corporation Ltd and Jiangling Motors Corporation. Ford will continue working closely with its JV partners to develop and manufacture new energy vehicles to meet rising consumer demand in China during the impending electrification phase of the Chinese auto industry.