Ford, Zotye to Launch EV Production in China

Ford Motor Co. and Anhui Zotye Automobile Co. are spending 5 billion yuan ($755 million) on a venture to build and sell small electric cars in China.

The cars are to be produced at a new factory in Zhejiang province and will be marketed under a Chinese brand, according to Ford. The plan requires government approval.

Zotye Ford also plans to open a research and development center and will establish its own network of sales and service centers. In addition, the companies say they are exploring the potential for joint mobility services in China.

Ford also has conventional carmaking ventures in the country with Chongqing Changan Automobile Co. and Jiangling Motors Corp. Like other foreign carmakers, the U.S. carmaker is adding local EV production to help meet government sales quotas for EVs that will begin in 2019. The regulations will require the equivalent of a 10% EV sales mix that year, rising to 12% in 2020.

Bloomberg News says the head of Ford operations in Asia Pacific is scheduled to meet with Presidents Donald Trump and Xi Jinping on Thursday to confirm that Ford also intends to export about $10 billion in Chinese-made Ford and Lincoln brand cars and parts to the U.S. over the next three years.

Ford said previously that 70% of all vehicles it sells in China will have plug-in hybrid or all-electric powertrain options by 2025. The company forecasts that the EV market in China will reach 6 million units per year by then. Last year, sales of electrified vehicles grew more than 50% to 507,000 units, according to the China Assn. of Automobile Manufacturers.