EVs will be built by Ford with Chinese automaker in a deal

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Over the past couple of months, China has been making plans and deals to detach its country’s cars off fossil fuels. In the month of July, Daimler agreed to pair up with Chinese automaker BAIC to invest $735 million in EV infrastructure. Ford has just started its own venture, a 50-50 partnership with manufacturer Zotye Auto for a joint investment of $756 million to manufacture electric vehicles. After approval deal by the Chinese government, the enterprise will build a manufacturing facility in the Zhejiang province to produce EVs under its new brand, Zotye Ford. CNET reported that both parent companies signed an agreement in the month of August and it paved the way for their partnership.

VP of Ford group Peter Fleet issued a statement that Zotye Ford will present a new brand family of small all-electric vehicles. VP also added that we will be exploring innovative vehicle connectivity and mobility service solutions for a new generation of young Chinese customers. China hasn’t yet set a specific deadline to ban fossil fueled vehicles. France and UK expect to phase out by 2040, the clock is ticking. Foreign auto-manufacturers have two choices: Pay a hefty 25% import tax on vehicles or partner with a local company to manufacture vehicles in the country. It provides manufacturers such as Zotye experience, while allowing outside conglomerates access to Chinese markets. Auto-manufacture companies are making deals to get a slice of the country’s EV pie ahead of time.