The deal is pending regulatory approval.
The new joint venture builds upon Ford's ambitious China electrification strategy.
"Zotye Ford will introduce a new brand family of small all-electric vehicles", Ford group VP Peter Fleet said in the statement.
Ford has agreed to a $765 million joint venture with Chinese car manufacturer Zotye Auto to build electric vehicles in China, CNET reports. Several years ago, Chinese lawmakers created this shared ownership model to safeguard the local market, helping the country to develop into the largest market for new vehicles.
That is less than 7 percent of its total sales in the Chinese market, where it has already localized most of its more popular cars and sports utility vehicles in its existing joint ventures－Changan Ford Automotive and Jiangling Motors Corporation. "Buyers of electric cars can take out loans for up to 85% of the cost of a new energy auto, compared with 80% for conventional vehicles".
Worker in the Ford Zotye plant in China.
The second largest US automaker said on November 8 that it's finalized an alliance with China's Anhui Zotye Automobile Co.to manufacture and sell a full line of electric vehicles. The Chinese automaker also produces vehicles powered by other sources.
Upon its establishment, the new JV will expand Ford's footprint in China. The freshly-minted CEO of Ford, Jim Hackett, was head of the automaker's "smart mobility" unit until he was tapped to lead the company earlier this year. As part of the deal, Ford says they are planning to export $10 billion worth of components and vehicles from the U.S.to China over the next three years, a figure that is likely to grab the attention of USA officials. Last year, the Blue Oval sold well over a million vehicles in China.
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