Ford recently announced that it is setting up a joint venture in China to build electric passenger vehicles with the Anhui Zoyte Automobile Company. The Chinese government is scrambling to deal with air pollution and is aggressively pushing for companies to develop and build out alternative energy vehicles. The government has invested billions of dollars in research and development in the hopes that it can accelerate the move away from fossil fuels. Given the industry climate in China, Ford saw an opportunity and jumped on this deal with what some call China’s number one all-electric vehicle manufacturer.
The Ford Motor company is one of the last auto manufacturers to announce a deal to make electric vehicles in China. Daimler AG, General Motors, and Tesla have all made similar announcements recently. The two companies have yet to finalize the deal, but they have signed an MOU (memorandum of understanding). Reports claim that it would be a 50/50 alliance and will look to help Ford boost its market share in China, which is down over 8% year to date. We don’t have specific financial details at this time, and the new joint venture will unveil its product and pricing strategy at a later date.