Ford plans to set up a joint venture with Anhui Zotye Automobile to make electric vehicles in China. Fred Katayama reports.
Ford Motor plans to set up a joint venture to make electric vehicles in China. It said Tuesday it's teaming up with electric car maker Anhui Zotye Automobile to put out a new brand in the world's largest auto market. No word yet on financial commitment or when it'll make a firm decision on the joint venture. Ford's shares rose on the news. Anhui is privately held. The move would deepen Ford's commitment to making electric vehicles there. It had earlier announced plans to put out hybrid or fully electric versions of all models it builds in China with its partner, Chongqing Changan Automobile. Autotrader's senior analyst Michelle Krebs: SOUNDBITE: MICHELLE KREBS, SENIOR ANALYST, AUTOTRADER, (ENGLISH) SAYING: "All the electric vehicle action is happening in China. In the U.S., we're reviewing the aggressive fuel economy standards that were put in place by the Obama Administraiton. There's a review of that coming up. We'll know that next year. But clearly, the automakers are thinking, the action's in China. It's the biggest market in the world by a longshot." China is struggling with alarmingly high pollution levels in major cities, so it's aggressively pushing plug-in vehicles. It wants electric and plug-in hybrid cars to make up at least a fifth of its auto sales by 2025. Ford sees demand for about four million all-electric cars in China by then. Tesla, Daimler and GM also plan to make electrical vehicles on the mainland.