Ford Signs MoU To Build Electric Vehicles In China

2 months ago by Mark Kane 16

Ford Mondeo Energi (AKA Fusion Energi)

Ford will build electric vehicles…in mass…in China.

Ford and Zotye Auto are exploring the possibility of an all-electric vehicle joint venture (50:50) in China that would sell EVs under an indigenous brand.

Mr. Peter Fleet, group vice president and president, Asia Pacific, Ford Motor Company and Mr. Jin Zheyong, chairman and president, Anhui Zotye Automobile Co., Ltd.

Both partners signed an MoU, but didn’t reveal either an intended production timeframe, or the value of the investment considered.

Ford is currently offering a plug-in produced in partnership with Changan, while Zotye produces and sell EVs under its own brands (more than 16,000 sold in the first seven months of this year).

“The goal of the MoU is to explore the establishment of a joint venture for the development, production, marketing and servicing of a new line of all-electric passenger vehicles in China. The announcement is consistent with Ford’s vision for a more sustainable auto industry, as well as efforts to contribute to societal goals of improving air quality and addressing climate change.”

“China is the fastest-growing market in the world for new energy vehicles (NEVs).  Ford expects the market for NEVs in China to grow to six million units per year by 2025, of which approximately 4 million vehicles will be all-electric.

Zotye Auto

Zotye Auto is a pioneer in the Chinese all-electric vehicle segment and was one of the first automakers to produce all-electric passenger vehicles in the country. It is the market leader in China’s all-electric small vehicle segment. Zotyesold more than 16,000 all-electric vehicles through July this year, representing a growth of 56 percent year-over-year.

Vehicles produced would be sold under an indigenous brand owned by the new joint venture and would aim to capture a sizeable share of China’s all-electric passenger vehicle market. Additional details, including information about the brand, products and production volumes, will be announced at a later date, pending a final definitive agreement and regulatory approvals.”

“As part of its global electrification commitment, Ford has invested $4.5 billion to make electric vehicles that offer customers more capability, productivity and performance. Ford plans to introduce 13 new electrified vehicles globally in the next five years, including an all-electric small SUV to be sold in Asia, North America and Europe. Ford also recently announced an ambitious China electrification strategy and confirmed that 70 percent of all Ford vehicles sold in China will have electrified powertrain options by 2025.

The new 50:50 joint venture would be a major step forward in building on Ford’s electrification initiatives and will significantly expand Ford’s footprint in China, along with the company’ssuccessful joint ventures, Changan Ford and Jiangling Motors Corporation.”

Peter Fleet, group vice president and president of Ford Asia Pacific stated:

“The potential to launch a new line of all-electric vehicles in the world’s largest auto market is an exciting next step for Ford in China. Electric vehicles will be a big part of the future in China and Ford wants to lead in delivering great solutions to customers.”

Jin ZheYong, chairman and president, Anhui Zotye Automobile Co., Ltd., based in Huangshan, Anhui province said:

“The MoU between Zotye Auto and Ford opens the door for us to explore our cooperation in the development of clean energy vehicles. This presents us with an exciting opportunity to leverage each other’s strengths in achieving a win-win situation for both parties’ growth in the fast-evolving Chinese electric vehicle market.”

There’s no indication whatsoever that those partnership would spawn any of these future electric vehicles to be sold outside of China, let alone the US or Europe.

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16 responses to "Ford Signs MoU To Build Electric Vehicles In China"

  1. ffbj says:

    What else can they do?
    Also Apple throws in the towel on self driving car project.

    1. mx says:

      Make China Great Again!

  2. Brian says:

    Doesn’t China have strict import laws that basically require Ford to build cars in China if they hope to sell them there? This could simply be to more easily sell the cars they already have in a new market.

    Nothing to see here. Move along.

    1. Rob Stark says:

      Imported cars have a 25% import tax.

      BEVs must have lithium iron phosphate batteries to qualify for incentives.

      It doesn’t make any sense to manufacture lithium iron phosphate BEVs outside of China as they are uncompetitive.

      The Chinese government encourages lithium iron phosphate through incentives because it has a more stable chemistry and inherently less prone to fire. But lithium ion can overcome this with pack design.

      1. zzzzzzzzzz says:

        As far as I understand Chinese government recently started approving subsidies for cars using NMC too.
        http://insideevs.com/china-nmc-battery-technology-green-car-subsidies/

    2. L'amata says:

      USA will have some stiff Rules coming on Chinese imports and I hope they are Highly taxed ..Because ford should not get it’s Rewards from the American Consumer for creating more Jobs in China , at cheap Chinese labor rates & Big Profits .

      1. Mark.ca says:

        I guess you were not paying attention for the past 20 years. Politicians get paid to keep the status quo and have the borders open…nothing will change as regular people can’t compete against the big $ the corporations throw at the elected officials.

        1. SJC says:

          This is why trade is typically a right wing issue, cheap labor brings higher profits while they talk about American jobs.

      2. mx says:

        Game Theory 101: Match the Chinese import fee: 25%.
        We’ll see if our government is smart enough.

    3. grlym says:

      China is the world’ largest car sales market. GM now sells more car in china than in the US. The Chinese government has mandated that a manufacturer must sell a specified and increasing percentage of electric vehicles in its total car sales. If you don’t meet the targets, you have to reduce your ICE car sales.

  3. Ron M says:

    When China says they want more electric cars and car manufacturers complain they can’t do it in the time China wants. China says BS make what we want or you won’t be selling in China.
    It took over 20 years to get CAFE standards raised Obama and the auto industry ne er had a problem meeting them. Although part of the problem was congress not setting standards. Most of them politicians are so deep in debt to the fossil industry they can’t take a s…without asking for permission.

  4. Foo says:

    Geesh, would be nice to define what “MoU” means in the article.

    I had to look it up — it is short for “memorandum of understanding”, a preliminary written agreement basically.

    1. Basically, a letter to state that they agree to meet on this subject and begin talks on what each can do to help each other (& Ford) Win under current rules!

  5. Martin T. says:

    Ford and China, perfect quality match up with for these sweet hearts.

    That is sarcasm if you cannot figure it out.

  6. CDAVIS says:

    MoU:

    1) China gets 1/2 deal equity in trade for access to Chinese labor market and access to Chinese consumer market.

    2) Ford Contributes IP to China Inc.

    3) Prohibition of Ford lobbying USA law makers to impose import restrictions or import tax on direct-related and competing-related Chinese products entering USA…. this is the biggy that does not get much media attention … and explains in large part why China gets away with one-sided trade deals.

    Sounds like a fair deal…

    1. mx says:

      So, Ford’s CEO SOLD OUT America.
      Don’t you love capitalism?

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