Ford, Alibaba Sign Letter of Intent for Three-Year Collaborative Agreement

by Ben Pena December 9, 2017, 4:47
Ford, Alibaba Sign Letter of Intent for Three-Year Collaborative Agreement

The Alibaba Group Holding Ltd (NYSE:BABA) has signed an agreement with Ford Motor Company (NYSE:F) to combine forces and jointly search for business opportunities including the cloud computing, retail, and connectivity which may include selling of Ford cars on the Alibaba's online retail podium, Tmall.

Earlier this year, Alibaba's retail arm Tmall announced the development of a auto vending machine, in which consumers can use their phone to browse through cars stored in a tall windowed building and have the vehicle brought down to street level via elevator lifts.

The deal came at the end trip by Ford Chairman Bill Ford Jr. and CEO Jim Hackett.

Mark Truby, Ford's global chief spokesman said the company is expected to make an announcement on Thursday in Hangzhou, where Alibaba is based, but declined to comment in advance. Consumers could use the vending machine with an app, choosing to either immediately buy one of the vehicles or test drive one.

In October alone, 77,000 full electric vehicles were manufactured and an equal number of them were sold, up more than 76 percent and 95 percent respectively.

Ford has put a lot of focus on China's electric vehicle market - with a local joint venture expected to lead to 15 electric or hybrid models on sale in the country by 2025 - and today the automotive giant announced a tie-in with Alibaba to fulfill its ambitious goals.

All the best reaction as England draw Belgium, Panama and Tunisia
Only last week, the same website brought us the image below, showing what they confidently state will be England's next home shirt.

The move, though, could be potentially problematic for dealers, some industry experts said.

Speaking to Reuters, head of Shanghai-based consultancy Automotive Foresight, Yale Zhang, said it will hurt traditional dealers.

"When online sales and direct sales volume was small that is one thing". "Retail innovation is great, but is by its nature disruptive and can't keep everyone happy".

The danger is that the dealers lose out not only on a lot of vehicle sales but also the potentially lucrative auto financing aspect of their traditional business. As of October, Ford's 2017 auto sales were down 5% from the same period in 2016.

Ford is a relatively small player in China and has been focusing on expanding into the market to better compete globally.

Ford's sales in the first 10 months of 2017 were 938,570, a decline of 5% from the same period in 2016, against a 2.2% gain to 3.13-million for rival General Motors.

Recommended News

TOP News

Maradona confident Argentina can qualify ahead of Nigeria
Argentina did not have superstar Lionel Messi last month. "But I am confident that we can make it out of the group", he said. Their fans will be there and it will be like they're playing at home.

UAE 'surprised and disappointed' over European Union blacklisting
The EU originally screened a total of 92 jurisdictions and once the list is compiled it is expected to be continuously updated.

U.S. quits talks on global migration pact over sovereignty clash
More recently, America pulled out of the Paris-based culture and education body, UNESCO , accusing it of "anti-Israel bias". President Barack Obama's administration backed the resolution, known as the New York Declaration, which also asked U.N.

PH manufacturing PMI climbs in Nov
The survey was bolstered by surging orders at home and from Europe's recovering economy. There were signs, however, that inflationary pressures remained strong.

Lupe Valdez, a Democratic candidate for governor, has declared migrant worker roots
Immigration and Customs Enforcement detainer requests for Dallas County Jail inmates who would otherwise be released on bail. Following Valdez' resignation, the Dallas County Commissioner's Court will select a temporary replacement sheriff.

Black Ferns beaten in sevens quarter-final
A dominant first-half display from the Blitzboks saw them lead 19-0 at half-time, playing a 6 man New Zealand at a stage. After an interception in their own half, New Zealand stormed forward through Sam Dickson but he got scragged short.

Pamela Anderson responds to backlash over Harvey Weinstein comments
Kelly then pointed out that numerous meetings were set up by agents, to which Anderson said that was "not a good excuse". In a follow up post she wrote: 'I do NOT wish apologise for what I said, and will not get coerced into apology.

Mega Man 11 Officially Announced
It sports 2.5D design direction, completely hand-drawn characters and environments, a mysterious new Robot Master, and more. Well, the Blue Bomber's exile is officially over, as Capcom has announced Mega Man 11 .

Atiku Abubakar rejoins PDP
Explaining his choice of the medium for the announcement, Atiku said, " I want to reach as many of our young people as possible ". There, he vied again for the top job but lost the primaries to President Goodluck Jonathan who succeeded President Yar'Adua.

John Lewis cancels trip to civil rights museum, citing Trump's attendance
The NAACP has said Trump should cancel his planned appearance because of his divisive record on civil rights issues. Trump ultimately visited the museum more than a month later on February 21.