China, struggling with alarming pollution levels in major
cities, is aggressively pushing plug-in vehicles and has poured
in tens of billions in investment, research funding and
subsidies, drawing many new automakers to launch projects.
Tesla, Daimler AG and General Motors are among firms that have
already announced plans for making electric vehicles in China,
which wants electric and plug-in hybrid cars to make up at least
a fifth of the country's auto sales by 2025.
Ford, whose overall China sales are down 7 percent this year,
said in a statement on Tuesday that it had signed a memorandum
of understanding with Zotye Auto to build a new brand under
which the electric vehicles will be sold. Both firms will hold a
50-50 stake in the JV, it said.
It did not provide details of financial commitments nor say by
when it will take a firm decision on the JV.
Ford sees China as the fastest growing market in the world for
new energy vehicles (NEV) and forecasts that segment to grow to
six million vehicles per year by 2025, of which approximately
four million would be all-electric.
The potential JV with Zotye Auto would represent a deepening of
commitment to electric vehicles in China by Ford. In April, it
outlined plans to offer by 2025 hybrid or fully electric
versions of all models built in China with its domestic joint
venture partner, Chongqing Changan Automobile Co Ltd.
However, it also said at the time that it would take a cautious
approach to the market due to uncertainty about consumer
interest and government policy.
Zotye, which Ford described as the market leader in China's
all-electric small vehicle segment, sold more than 16,000
all-electric vehicles this year through July, representing a
year-on-year growth of 56 percent, it said.
The privately-owned company, which is headquartered in China's
coastal Zhejiang province, also makes sport utility vehicles and
cargo trucks. On Monday, it reported a near six-fold jump in
first-half profits.
Ford said it would release details about the brand, products and
production volumes at a later date, pending a final agreement
and regulatory approvals.
(Additional Reporting by Beijing Monitoring Desk; Editing by
Muralikumar Anantharaman)
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