Caixin
BUSINESS & TECH

Ford, Zotye Sign $756 Million Electric-Vehicle Deal

By Xiao Ying and Mo Yelin
Ford has two existing joint ventures in China. Chinese law has long limited foreign firms to just two such ventures, but in 2015 Beijing relaxed this rule to allow companies to form a third venture if it produces new-energy cars. Photo: Visual China
Ford has two existing joint ventures in China. Chinese law has long limited foreign firms to just two such ventures, but in 2015 Beijing relaxed this rule to allow companies to form a third venture if it produces new-energy cars. Photo: Visual China

Ford Motor Co. and China’s Anhui Zotye Automobile have agreed to set up a joint venture to build electric passenger vehicles in China.

The news, announced Wednesday, comes two months after the pair said they intended to form the venture.

The total investment is estimated at 5 billion yuan ($756 million) and both partners have a 50% stake in it.

Once Chinese regulators sign off on the deal, the new venture — Zotye Ford Automobile Co. Ltd. — will open a new manufacturing plant in Zhejiang province and produce all-electric vehicles under a new Chinese brand name.

You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.