US automaker Ford Motor has decided to end its electric vehicle (EV) joint venture plans with Chinese car manufacturer Zotye Automobile, as per media reports citing a statement by the company.
The company said that its decision was prompted by major changes in China’s electric vehicle industry and government policies since it signed the JV contracts. The company had signed the agreements with Zotye in 2017 and 2018.
In the statement, Ford said that it would pursue a mire ‘flexible business model in China’ that would utilize its existing operations in the country and build business centers in relation to that.
During former US President Donald Trump’s visit to China in 2017, Ford and Zotye had announced that they plan to invest a combined $756mn to set up a 50-50 joint venture in China to build small electric passenger vehicles.
Last week, Ford informed that it will start producing all-electric Mustang Mach-E vehicles in a joint venture with Chongqing Changan Automobile Co.