Published: Wed, August 23, 2017
Money | By Oscar Reynolds

'Laggard' Ford announces line of fully-electric vehicles for Chinese market

'Laggard' Ford announces line of fully-electric vehicles for Chinese market

Ford has said it is in discussions with a Chinese company to create a new line of electric vehicles for the world's biggest market. Zotye, which does not produce gas or diesel cars, sold more than 16,000 electric vehicles through July this year - a 56% increase from the same period in 2016.

Today, Ford announced that they signed a Memorandum of Understanding (MoU) with Anhui Zotye Automobile Co., Ltd., a major manufacturer of all-electric vehicles in China, for a joint-venture for "the development, production, marketing and servicing of a new line of all-electric passenger vehicles".

It looks like Ford Motor Company (NYSE:F) is getting into the electric vehicle market in China.

The Chinese government began incentivizing new energy vehicles several years ago to combat horrific air pollution, but sales have only really picked up over the past couple of years. Zotye, Ford's new partner, is an electric auto specialist, with a total of 16,000 EV sales so far in 2017.

Can China's electric cars kill off petrol?

The trans-Pacific partnership has not yet announced details of the vehicles or how many will be produced, but said information will be released after a "final definitive agreement" and regulatory approval.

The move shows Ford's commitment to both the Chinese market and electric vehicles.

Could electric cars reduce China's smog? "Within the next four years, we plan to bring an all new small battery electric vehicle to China". The goal of this MoU is to facilitate the possibility of a joint venture between Ford and Zotye Auto with the intention of co-developing and -producing zero-emissions passenger vehicles for sale in China. Ford said it expects the market for EVs in China to rise to 4 million by 2025 out of a total of 6 million units that will have some degree of electrification.

Like this: