Ford Signs Deal To Make All-Electric Cars In China
Electric Vehicle, EV, is the future of automobiles and any country that does not join in this drive will appear to be living in the past in few years time.
One of the world’s largest auto manufacturers, Ford Motors has joined the fray, pushing to electrify its vehicles going forward.
The company just made another big move to enter the largest market in the burgeoning EV landscape - China.
The automaker signed a definitive joint venture agreement with China's Zotye to invest a combined $756 million to build electric cars within the country's borders.
The deal creates a new entity, Zotye Ford Automobile Co. Ltd., for which the companies will hold equal stakes.
The two companies previously signed a memorandum of understanding back in August, so the more formal partnership shouldn't come as a surprise.
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Zotye is no stranger to the Chinese EV market — the brand says it has sold 22,500 of its small, all-electric cars as of October.
The carmaker's experience and presence in China will no doubt be valuable to Ford, which faces competition from fellow U.S. auto giants like GM, which has already unveiled a small EV for Chinese urbanites through its Baojun brand, the E100.
The Ford-Zotye deal is currently awaiting government's approval.
Once the companies receive the go-ahead, the new brand plans to build a manufacturing plant in the country's Zhejiang Province.
Zotye Ford will also "explore the opportunity to offer new mobility services in China," aiming to address other aspects of transportation.
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