Ford Cancels EV Joint Venture With China's Zotye

Matt Posky
by Matt Posky

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.]

Matt Posky
Matt Posky

Consumer advocate tracking industry trends and regulations. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied, he pivoted to writing about cars. Since then, he has become an ardent supporter of the right-to-repair movement, been interviewed about the automotive sector by national broadcasts, participated in a few amateur rallying events, and driven more rental cars than anyone ever should. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and learned to drive by twelve. A contrarian, Matt claims to prefer understeer and motorcycles.

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  • Lou_BC Lou_BC on Feb 06, 2021

    "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....

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    • Steve S. Steve S. on Feb 11, 2021

      @Matt Posky "Left-leaning Wikipedia" Is everything "left-leaning" to you people?

  • Jeff S Jeff S on Feb 07, 2021

    @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.

  • Jeff S Jeff S on Feb 07, 2021

    Microsoft is an excellent present day example.

  • Arthur Dailey Arthur Dailey on Feb 08, 2021

    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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