Failure to Establish US-China Electric Vehicle Joint Venture

Trump Era Initiative... US Ford Cancels Electric Vehicle Joint Venture with China's Zhongtai

[Asia Economy Reporter Yujin Cho] The electric vehicle joint venture plan between Ford of the United States and Zhongtai of China, which was promoted during the Donald Trump administration, has fallen through.

According to major foreign media on the 3rd (local time), Ford announced that discussions to establish a joint venture with Zhongtai were halted due to significant changes in China's government industrial policies.

Ford and Zhongtai agreed in August 2017, during then-President Trump's visit to China, to establish a joint venture with a 50-50 stake responsible for producing and selling electric vehicles. The two companies also signed a memorandum of understanding the following year to establish a joint venture for developing electric vehicles for ride-sharing companies.

Ford stated in a press release that it would pursue a more flexible business model in China but did not specify what changes led to the cancellation decision.

Earlier, Ford announced that the joint venture it formed with Changan Automobile in Chongqing, China, would begin producing the electric vehicle Mustang Mach-E.

Sales of electric, plug-in hybrid, and hydrogen vehicles in China are currently at 5% and are expected to increase to 20% by 2025.

This content was produced with the assistance of AI translation services.