By on December 5, 2017

Ford/Zotye Agreement

Practically every automaker seeking to expand its global footprint is courting China right now. Ford Motor Company has already signed an agreement with Anhui Zotye Automobile to set up a $754 million joint venture focused on electric cars in the hopes it can get a head start on the country’s fast-approaching EV mandate.

With so much opportunity for growth, major manufacturers see Asia as a ripening market as North America withers on the vine. With that in mind, Ford has announced plans to launch 50 new vehicles in China by 2025. 

“Between now and 2025, we will launch 50 new vehicles in China, and of those 50 new vehicles, 15 of them will be all-new electrified vehicles,” said Peter Fleet, Ford’s president of Asia Pacific, in Shanghai on Tuesday.

According to Reuters, Fleet expressed the need for a strong push into China’s utility segment as well. That means Asia is likely to see Ford fielding an array of small vehicles for both consumer and commercial applications. But most of them will have to come with an electrified variant if Ford plans on adhering to the country’s strengthening electric vehicle mandates.

China’s original plan was to ensure EVs comprise at least a fifth of all domestic auto sales by 2025, but it has softened slightly after global manufacturers said that simply wasn’t possible. Companies producing more than 30,000 cars annually will still have to earn a satisfactory “new-energy vehicle score” though.

The country’s Ministry of Industry and Information Technology has indicated that at least 10 percent of an automaker’s lineup should be made of zero- and low-emission vehicles by 2019. That number rises to 12 percent the following year and continues its upward trajectory from there. Any group that fails to adhere to this guideline will be forced to purchase credits from China or face financial penalties.

While Europe incessantly promotes the abolishment of internal combustion engines, it’s China that’s most strongly influencing the industry. It also has the most aggressive timeline. “We’ve never seen change like we do today,” said Ford’s executive chairman Bill Ford. “Everything is being disrupted.”

“It’s clearly the case that China will lead the world in EV development, and so we at Ford are investing enormous amounts of money both here in China and globally to bring electrification into fruition.”

[Image: Ford Motor Company]

Get the latest TTAC e-Newsletter!

10 Comments on “Ford to Launch 50 New Vehicles by 2025… in China...”

  • avatar

    Loyal Americans that they are.

    And guess what, China will absorb American tech and turn around and build the same product for far less before showing Ford the door.

    LT China will not let foreign companies dominate their market. That seems obvious to everyone but short sighted execs at places like Ford.

    • 0 avatar

      Exactly this. We keep throwing away our best IP to get cheaper labor. At which point, the cheaper labor can copy the IP and has already been trained to assemble/manufacture it. Just saw the CEO of Aetna could get up to $500M for “successfully” merging with CVS. WTF – really, he couldn’t have settled for $50M for all that hard work, and pay his employees a bit better, or reduce costs, or re-invest in the company?? No one has any long-term thoughts over here..

      • 0 avatar

        And Aetna was the last big ins co in bankrupt Hartford CT. The former ins capitol of the world.

        trivia: CVS is the old Tom McAn Shoe Co.

        As for the exec above – obscene – but at least he didn’t wreck the co like Marissa Mayer did w/ Yahoo before she walked away w/$ hundreds of millions$ (@$300,000,000).

    • 0 avatar

      We made the same mistake with Japan, decades ago. They didn’t know how to make electronics until we showed them how.

      Why don’t we learn?

  • avatar

    lol, these comments are pretty ridiculous. It’s not China that needs Ford to build EVs, it’s Ford that needs the Chinese market to survive. China will build EVs with or without Ford, so all the ridiculous posts here about how we’d be “teaching” the Chinese how to build these cars is beyond ridiculous.

    The reality is that if Ford doesn’t try to sell EVs in China then it’ll just be Chinese companies as well as European companies like VW that are happy to work with the Chinese selling cars there. And then those companies will have the scale to crush Ford in all the other markets around the world.

    If you believe that car companies can survive by just staying in the US market you are horribly ignorant of how the world is and will be. China was always going to become a dominant economic force sooner or later, like it once was. Pretending like there was some way to forever keep another country poor just so you could exploit their cheap labor is ridiculous.

    But the reality is that trade is a two way street anyways, it’s not all doom and gloom like y’all are making it seem. They’ll want more products than their own manufacturers will be able to produce, especially once more environmental regulations make it impossible for them to continue producing at their current prices and rates. China will become a huge importer of products, so to keep yourself out of this market is economic suicide.

    • 0 avatar

      I look at our trend in vehicles and worry we’re going to be like Australia in a few decades. It could only survive as a third-world backwater making obsolete junk for a destitute population in a heavily protected market.

      • 0 avatar

        Damn, I guess that big al’s “what’s true for Australia must be true everywhere” nonsense is rubbing off.

        Australia’s population simply isn’t enough to support the manufacturing capabilities we have. They made a choice to put manufacturing on the back burner and have no one to blame but themselves for its decline. The North American market is vastly different. There are more than enough car buyers here to justify building cars here. Likewise, we have labor-friendly (as in non-union) areas that are quickly becoming a mecca of automotive plants. That isn’t going away anytime soon. There are economic factors in Australia that do not apply here.

    • 0 avatar

      Exactly. Automakers who refuse to do buisness in China based on patriotic duty, or whatever, would just be saying to other automakers “you go make that money, maybe you can buy our assets after we go under”.

      Ford is a global company that is headquartered in the U.S., this isn’t anything new. The majority of their profits are coming here, as the majority if their R&D, engineering and design centers are here. Ford already exports to China, and will soon export out of China. How anyone can expect them to ignore one of, if not THE largest car market in the world is beyond ignorance.

      China already builds the latest technology-equipped devices, such as iPhones and such. I don’t think they’ve put Apple out of buisness just because they know how to make their products. Their copycat products rarely have any success outside of China itself, and even there, they know a cheap knockoff of an F-150 is just that, a cheap knockoff.

  • avatar

    @tekdemon – you’re spot on. The comments critical of Ford come from people with no accountability for having to lay off thousands of GM and Ford employees if Ford don’t have a place in the China market place. As for IP concerns, that’s what R&D is for, to keep ahead of the competition. And where do you get money for R&D, from revenue from markets like China and India.

Read all comments

Recent Comments

  • dal20402: It was the 2002 concept that had suicide doors. The 2015 concept was nearly identical to the production...
  • Jeff S: The late night comedians do miss those late night tweets of Trump as he is sitting on the can. Never was that...
  • Jeff S: Very true you cannot have a mineral lease into perpetuity if you have not exercised the option to extract the...
  • Jeff S: @EBFlex–Now we both agree on something that Putin is full of it. See there is some room for...
  • Jeff S: @EBFlex–Again you are looking for an argument I said the car was not feasible until the Model T. Early...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Jo Borras
  • Mark Baruth
  • Ronnie Schreiber