(ATF) Ford Motor has terminated plans to launch electric vehicle (EV) joint ventures with China’s Zotye Automobile, the US auto giant said on February 3.
It said that China’s EV industry and government policies had undergone major changes since the agreements were signed in 2017 and 2018, prompting Ford’s decision.
Ford didn’t specify which changes triggered its move. Last week, Ford said its China joint venture with Chongqing Changan Automobile would start making all-electric Mustang Mach-E vehicles, which Ford said are now shipping to dealers in the US.
On February 3, Ford said EV and hybrid sales jumped 18.5% in January as momentum grows for its F-150, Escape and Explorer hybrid vehicles. The electric Transit van is expected late this year.
In a statement on Thursday, Ford said it would pursue a more “flexible business model in China” that would see it use existing operations in the country and elsewhere, and build related business centres.
In November 2017, Ford and Zotye agreed to establish Zotye Ford Automobile, a 50:50 joint venture that the companies “would offer a range of stylish and affordable” EVs for consumers in China.
It planned to design, build, market and distribute all-electric passenger vehicles for China, the world’s leading EV market.
“The establishment of the JV is a key step by Ford towards realising its vision of a cleaner, more environmentally-sustainable future,” the US company said in a statement at the time.
While the JV leveraged a combined investment of 5 billion renminbi ($756 million in 2017), the partnership never got off the ground.
Chinese state media reported in 2019 that the deal was unravelling on a slump in the automotive market and changes in regulation.
With reporting by Reuters
ALSO SEE:
Nissan’s all-EV pledge for key markets by early 2030s
EV sector fast-tracked by green recovery
Changes to EV supply chains signal new world order
