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

A staunch consumer advocate tracking industry trends and regulation. 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 with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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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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