Published: Thu, November 09, 2017
Worldwide | By Isabel Fisher

Ford will build EVs with Chinese automaker in $765 million deal

Ford will build EVs with Chinese automaker in $765 million deal

"Subject to regulatory approval, Zotye Ford will introduce a new brand family of small all-electric vehicles", Fleet said.

The announcement Wednesday of the $750 million venture with Anhui Zotye Automobile Co. adds to rising investment by global automakers in China's growing electric vehicle industry.

The agreement was signed in Beijing by Peter Fleet, Ford Group vice-president and president, Ford Asia Pacific, and Ying Jianren, chairman of Tech-New Group Ltd. and board director of Zotye Auto.

Zotye Ford will have a manufacturing facility based in Zhejiang Province. This gives manufacturers like Zotye experience (though that company in particular already produces electric and battery-powered vehicles) while granting outside conglomerates access to Chinese markets. Ford sold more than six million worldwide previous year.

President Trump, who has compelled USA company to send back jobs to the United States, will address the U.S. trade discrepancy with China during talks with President Jinping in recent future. Each company has a 50 percent stake in the effort, though the Chinese government still needs to approve the deal. Peter Fleet, Ford's Asia - Pacific president, told Bloomberg Television that he will convene Xi and Trump and verify around Dollars 10 billion in exports from the United States to China. Trump may also address United States complaints about intellectual property thefts during his talks with Xi. "Buyers of electric cars can take out loans for up to 85% of the cost of a new energy auto, compared with 80% for conventional vehicles".

The agreement is part of Ford's strategy to offer electrified powertrain options on a minimum of 70 percent of Ford-branded vehicles sold in China by 2025.

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