The stock of Ford Motor Company (NYSE:F) closed at $ 12.04 losing -0.17% in yesterday’s trading session. China is fast rising in terms of technological advancements and at the moment it is focusing in the manufacture of the electric passenger vehicles.
Ford and China’s Anhui Zotye Automobile have struck a deal that will see the two contribute about $756 million in a joint venture in China. The aim will be to come up with electric passenger vehicles which will make travelling safer and more convenient.
The 50-50 venture will be going by the name Zotye Ford Automobile Co. Ltd and if all moves according to plan it will construct a shop at a manufacturing plant in the province of Zhejiang. The new entity will set out to sell electric vehicles with the new Chinese brand.
Ford has already expressed its strong stand outlining that it will be capitalizing on the boom in demand for the electric vehicles in China. That is the global top auto market at the moment. President Donald Trump paid China a visit this particular week and that was the exact moment when the deal was struck.
Ford’s spokesperson opined, “The establishment of the JV is a key step by Ford towards realizing its vision of a cleaner, more environmentally-sustainable future. At least 70% of the Ford-branded vehicles sold in China will offer electrified powertrain options by 2025.”
The Asia Pacific president at Ford, Peter Fleet through a statement revealed that their company was currently holding discussions about the export of products between China and the U.S. There is hope that something good will come out of the meeting held between President Xi Jinping of China and Trump. The relations between China and the U.S are improving and business between the two is expected to benefit each of the parties in a major way.
Trump has been having issues with North Korea and harsh exchanges have been witnessed. Such relations have also bothered China a great deal and the whole world is watching to see what happens in the long run.