Friday, 24 November, 2017

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

Ford will build EVs with Chinese automaker in $765 million deal Ford will build EVs with Chinese automaker in $765 million deal
Sherri Watson | 10 November, 2017, 02:28

Together, they will create a brand new line of electric vehicles (EV) specifically for Chinese citizens.

The American multinational automaker company Ford Motor announced on 8 November about the investment of United States dollars 756 million along with its Chinese joint enterprise to fabricate electric cars, just as US President Donald Trump came to Beijing for thorny trade talks. The two firms confirmed the establishment of the Zotye Ford Automobile Company joint venture, which will design, build and distribute all-electric passenger vehicles for China, Ford said in a statement. Being able to point to local R&D and domestic production of these vehicles is sure be a mark in the plus column for the Zotye Ford joint venture. Since the vehicles are manufactured locally in China and exist under a Chinese brand, this partnership eliminates the large import duty that would exist if they were manufactured overseas or by Western companies locally.

These types of partnerships are part-and-parcel for foreign companies looking to do business in China. Ford already operates successful vehicle joint ventures with Changan Ford Automobile Corporation, Ltd. and Jiangling Motors Corporation. China will also inflict a quota necessitating automakers to manufacture a minimum number of new - energy transports in 2019.

Like most automakers, Ford is accelerating its investments into electrified vehicles to meet upcoming emissions requirements in major markets, including China. Last year, the Blue Oval sold well over a million vehicles in China. 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.