Ford and the Chinese car manufacturer Zotye are scrapping plans to build electric cars together. That decision would come from Ford because of ‘changed circumstances in China’.
In 2017, Ford and Zotye announced that they had joined forces to develop electric cars for the Chinese market. Zotye, an independently operating car manufacturer founded in 2005, would work on these cars with Ford under a joint venture. The idea was to introduce and build various models under a new brand name in a new factory in Zhejiang. None of that will happen, Ford announced.
The reason for putting an end to these plans is not entirely clear. Ford cites that “changed circumstances” in China are at the root of it. Not only in the field of the car industry, but also when it comes to government policy. A possible factor is that the rulers in Beijing mainly support purely Chinese manufacturers. Also, economic relations between China and the US have come under pressure in recent years and the market for EVs is quite saturated in China. That while the government continues to reduce subsidies on EVs.
Anyway, Ford apparently doesn’t find it attractive enough anymore. Incidentally, this news contrasts sharply with another plan that came out this week. Ford will also build the Mustang Mach-E in China. This is done under the wings of a joint venture with Changan that has already been formed and which has been in existence for 20 years.