Ford and Zotye to invest $756m for China electric cars

2017/11/12 17:05:55

UBO: This move by Ford and Chinese interests is strong evidence that hybrid and all-electric automobiles will play an increasingly important – perhaps even dominant – role in our automotive future. We believe it also raises some interesting possibilities and challenges for Ukraine. Some of the largest Ukrainian automotive interests have prospered by “bolt-together” assembly operations, i.e. plants that use foreign-made sub-assemblies to produce complete automobiles in-country. Now is the time that those in government – and those who want to be in government – should be asked some probing questions about what they are doing to foster upgrades to our tax and labor standards to assure that Ukraine is not left behind in this time of rapid technological change.


From IOL, South Africa, Nov 11, 2017:

 

Ford Motor Co. and partner Anhui Zotye Automobile Co. will invest 5 billion yuan ($756 million) to make and sell small electric cars in China as automakers step up investments in low-emission vehicles in the world’s biggest auto market.

 

Ford and Zotye plan to build a new manufacturing facility in Zhejiang province and the vehicles will be sold under a new Chinese brand, the U.S. automaker said in an emailed statement Wednesday. The joint venture is equally owned by the two companies and the plans require regulatory approval.

 

Automakers are accelerating investments into electric vehicles to meet stricter emission and fuel-economy rules set to take effect in major markets. China is implementing a cap-and-trade framework next year that will penalize companies that don’t meet fleet-based limits through fines or buying credits.

 

While Ford chose to team up with Zotye and Volkswagen AG has partnered with Anhui Jianghuai Automobile Group Corp. to make electric cars, companies like Tesla Inc. may benefit if China relaxes its joint-venture rule. The Chinese government is discussing a plan to allow foreign carmakers to set up wholly owned electric-vehicle businesses in its free trade zones, according to company officials briefed on the matter.

 

[…]

https://www.iol.co.za/business-report/ ... na-electric-cars-11911797

 

Photo: Yang Liu, Yang Liu, Imaginechina

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