Ford Motor has decided to terminate plans to launch electric vehicle joint ventures with China’s Zotye Automobile, the U.S. auto giant said on Thursday.

It said that China’s electric vehicle industry and government policies had undergone major changes since the agreements were signed in 2017 and 2018, prompting Ford’s decision. Ford didn’t specify which changes triggered its move.

Last week, Ford said its China joint venture with Chongqing Changan Automobile Co would start making all-electric Mustang Mach-E vehicles.

READ MORE NEWS  Fintech Bunk, Raises $228M At A $1B Valuation

In a statement on Thursday, Ford said it would pursue a more “flexible business model in China” that would see it utilize its existing operations in the country and elsewhere, and build related business centers.

Zotye didn’t promptly react to a request for comment.

In 2017, during a visit by previous U.S. President Donald Trump to China, Ford and Zotye said that they would contribute a consolidated $756 million to set up a 50-50 joint endeavor in China to fabricate little electric traveler vehicles.

READ MORE NEWS  China Blames U.S For Tensions In Taiwan

After a year, the two organizations said they had marked an update of comprehension for another endeavor that would make electric vehicles for ride-hailing armadas.

EV creators from local Nio Inc to U.S. pioneer Tesla Inc have been growing assembling limit on the planet’s biggest auto market, where the public authority is vigorously advancing greener vehicles as methods for lessening ongoing air contamination.

READ MORE NEWS  Sequoia Capital Invests Millions Of Dollars In Gather, A Virtual HQ Platform

Deals of electric, module crossover, and hydrogen-fueled vehicles in China are conjecture to ascend to 20% of new vehicle deals by 2025 from simply 5% now, the State Council said in November.

Leave a Reply

Your email address will not be published. Required fields are marked *