Ford has announced a joint venture with Chinese firm Anhui Zotye Automobile Co. to build electric passenger vehicles in China under a new brand, Caixin reported on Wednesday.
Ford, whose overall China sales are down 7% this year, said in a statement that both companies will each hold a 50% stake in the joint venture. The new brand will design, build and sell electric cars in the country.
A leader in China’s electric vehicle market, Zotye has sold 16,000 electric vehicles as of July this year. Thatfigure was up 56% compared to the same period last year.
As the world’s fastest growing market for new energy vehicles, China has been struggling with pollution in major cities, and is putting billions in investment, research funding and subsidies into new energy vehicle projects.
Both parties did not provide details of financial commitments, the report added.