Ford, China firm to in­vest $756m in elec­tric cars

Business Daily (Kenya) - - CORPORATE NEWS GLOBAL - -AFP

US auto stal­wart Ford has an­nounced a $756 mil­lion in­vest­ment with its Chi­nese joint ven­ture to pro­duce elec­tric cars, just as US Pres­i­dent Don­ald Trump ar­rived in Bei­jing for thorny trade talks.

Ford’s in­vest­ment with Zo­tye comes as China has sig­nalled it plans to force fuel guz­zling ve­hi­cles off the road, though the coun­try has yet to lay out a for­mal time­line for the new reg­u­la­tions. China will also im­pose in 2019 a quota re­quir­ing au­tomak­ers to pro­duce a min­i­mum num­ber of newen­ergy ve­hi­cles.

The two firms con­firmed the es­tab­lish­ment of the Zo­tye Ford Au­to­mo­bile Com­pany joint ven­ture, which will de­sign, build and dis­trib­ute all-elec­tric pas­sen­ger ve­hi­cles for China, Ford said in a state­ment.

Ford said Zo­tye is the mar­ket leader in China’s all-elec­tric small ve­hi­cle seg­ment, not­ing that the com­pany has sold 22,500 elec­tric

ve­hi­cles so far this year. Ford sold more than six mil­lion world­wide last year. Trump, who has pres­sured US com­pa­nies to repa­tri­ate jobs to the United States, will ad­dress the US trade deficit with China dur­ing talks with Pres­i­dent Xi Jin­ping on Thurs­day.

Trump and Xi are also ex­pected to over­see the sign­ing of a slew of busi­ness deals, a day after $9bn in agree­ments were struck be­tween Chi­nese and US com­pa­nies.

Pe­ter Fleet, Ford’s Asia-pa­cific pres­i­dent, said that he will meet Xi and Trump and con­firm around $10bn in ex­ports from the United States to China.

Trump may also ad­dress US com­plaints about in­tel­lec­tual prop­erty thefts dur­ing his talks with Xi.

Trump and Xi are also ex­pected to over­see the sign­ing of a slew of busi­ness deals

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