In Week 40 Ford’s new CEO Jim Hackett unpacked his plans to get the US carmaker back on track after an investor revolt led to his predecessor’s replacement. One of the pillars of his plan was leveraging partnerships, in particular with Zotye to develop a new line of low-cost all-electric passenger vehicles in China. This Week the two companies signed a definitive JV agreement for the formation of Zotye Ford Automobile Co. Ltd., a 50/50 partnership that will produce stylish yet affordable electric vehicles for the Chinese market. Zotye Ford is yet to announce the new brand for the JV’s strategy. The joint venture will require an initial investment of 5 billion RMB (~$750 million) which will be utilized to establish a manufacturing facility in Zhejiang Province. The JV is Ford’s 3^rd in China and will include exploring innovative and connected mobility services. Ford’s other Chinese JV’s are with Changan and JMC.

Ford and the Chinese automaker Anhui Zotye this week announced the signing of a Memorandum of Understanding to establish a 50/50 JV to develop electrified passenger vehicles in China. The JV is the second such JV announced by Ford, which is experiencing sales declines in the Chinese vehicle sector. The Detroit based company and another Chinese domestic JV partner, Changan, announced in April that they would offer PHEV and BEV versions of all the vehicles they manufacture by 2025.

Zotye announced that its sixth and latest production facility, completed recently in Chongqing, will produce an electric SUV, the M12 or Zotye T300E as well as a PHEV MPV the seven-seat B40.