By on February 4, 2021

Ford/Zotye Agreement

Ford Motor Co. has decided against its plan to launch an electric vehicle joint venture with China’s Zotye Automobile. The American manufacturer confirmed the decision on Thursday, stating that the Chinese Communist Party (CCP) had made sweeping changes to its policies since the deal was initially agreed to in 2017.

Few specifics were given beyond that and Ford hasn’t indicated the move might suggest a retreat from the one-party socialist republic. Ford recently confirmed its plan to build Chinese versions of the all-electric Mustang Mach-E with Chongqing Changan Automobile Co. and maintains numerous joint ventures necessary to continue doing business inside Central Asia.

However, the American company did suggest that future dealings in The People’s Republic of China would take into account a more “flexible business model.” This is likely a response to the uncertain economic climate and possibly the sporadic way the CCP has handled its promotion of green vehicles. But Chinese officials remain adamant that the EV adoption rate will explode over the next five years, even if it has to be repeatedly engineered by the government.

It’s something we’ve covered before — if you’re interested.

The product evolution will not include the Ford-Zotye partnership, however. Their planned $756 million (combined) for the development and production of extra-small EVs will be utilized elsewhere. Perhaps the savings can help Zotye (and HAAH Automotive Holdings) break into the North American market with the T600 by the planned 2020 target date

Oh. Right.

[Image: Ford Motor Co.]

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18 Comments on “Ford Cancels EV Joint Venture With China’s Zotye...”


  • avatar
    jkross22

    Deal with the devil. It was smart for Ford to move away from anything related to CCP entanglements.

  • avatar
    aja8888

    wait until the Tesla deal and plant fall apart. By then, the CCP will have all the Tesla tech.

  • avatar

    So CCP is not green and progressive enough for FMC? LOL, who knew. How about California? It is much closer to MI and has own branches of CCP esp. in Berkeley and generally in any of UC.

    • 0 avatar
      RHD

      Come on, Berkeley and China have nothing in common, other than some international students. China is the world’s largest burner of coal by a long shot, and their ways of dealing with industrial and residential garbage are not green in the least. Their forced labor prison factories and inhumane treatment of non-Han peoples is the exact opposite of “progressive”.

  • avatar
    Lorenzo

    Maybe Ford has something along the lines of the rumored Apple-Kia tie-up in the works? How about a Google-Galaxie?

  • avatar
    Lou_BC

    “Chinese Communist Party (CCP)”
    “one-party socialist republic”

    Someone needs to learn the definition of “communism”, “socialism”, and “republic”.

    But hey, the typical right-wing types out their will lap it all up….

    • 0 avatar
      ajla

      The second quote would be open to criticism but “Chinese Communist Party” is the actual, official name of the ruling political group in China. That is what they call themselves. So I’m not sure where the problem is there. How should the reference be made?

      cfr.org/backgrounder/chinese-communist-party

      • 0 avatar
        Lou_BC

        @ajla – I included “CCP” as a reference point to the author’s comment “one-party socialist republic”.

        Communism and socialist aren’t the same but are used interchangeably. That is incorrect.

        China can call itself a republic but it really isn’t.

        A recent study showed that less than 1/2 of the world’s population lives under a freely democratic electoral system.

        The USA due to what’s happening recently and over the past 4 odd years is now rated as a “flawed democracy”

        • 0 avatar
          ToolGuy

          @Lou_BC,

          Even our flaws are AWESOME:
          https://youtu.be/XffxvV1PAEI

          That is all.
          https://youtu.be/A6uiZOrEb90

        • 0 avatar
          Lorenzo

          When you separate communism and socialism, you’re dealing in semantics. Even communists conflate the two – that’s how the Russian communists became the Union of Soviet Socialist Republics.

          • 0 avatar
            Arthur Dailey

            Lorenzo, your posting contradicts political and economic theory and history.

            Socialism and social democracy are considerably different from communism.

            And the Bolsheviks seized power by overthrowing the ‘socialist’ Kerensky.

            Many nations have successfully implemented social democracy or have elected social democratic heads of state.

            Unfortunately Americans seem almost completely unable to differentiate between different political philosophies. A failing of the American educational system that has helped to create the divide we currently see in American politics.

        • 0 avatar
          Matt Posky

          “One-party socialist republic” is how the CCP describes China. It’s also how left-leaning Wikipedia defines the country.

  • avatar
    Jeff S

    @Lou_BC–Agree and the same could be said of using the words “Capitalism” and “Free Enterprise” interchangeably. Capitalism is not Free Enterprise it is more of Corporate Darwinism which discourages free enterprise which is why antitrust laws exist. An example of Capitalism would be John D. Rockefeller’s Standard Oil which lowered prices to the point of eliminating competition and then once there is little or no competition then raise prices.

  • avatar
    Jeff S

    Microsoft is an excellent present day example.

  • avatar
    Arthur Dailey

    Lorenzo, your posting contradicts political and economic theory and history.

    Socialism and social democracy are considerably different from communism.

    And the Bolsheviks seized power by overthrowing the ‘socialist’ Kerensky.

    Many nations have successfully implemented social democracy or have elected social democratic heads of state.

    Unfortunately Americans seem almost completely unable to differentiate between different political philosophies. A failing of the American educational system that has helped to create the divide we currently see in American politics.

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