Ford and Geely in Talks for Partnership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy F?
Source: seekingalpha
- Partnership Potential: Ford and Geely are in discussions for a potential partnership, focusing on Geely possibly using Ford's European factory space, particularly in Valencia, Spain, which would aid Geely's expansion in the European market.
- Technology Sharing Framework: The talks also include a framework for shared vehicle technologies, such as automated driving, which could enhance both companies' technological capabilities and accelerate the development and launch of new models.
- Significant Negotiation Progress: After months of discussions, the negotiations centered on European manufacturing have advanced, with Ford recently sending a delegation to China to expedite talks with Geely, indicating a sense of urgency in their collaboration.
- Tariff Avoidance Advantage: Utilizing Ford's factory space would help Geely avoid EU tariffs on electric vehicles made in China, significantly reducing Geely's operational costs in the European market and enhancing its competitiveness.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 13.65 USD with a low forecast of 11.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 13.810
Low
11.00
Averages
13.65
High
16.00
Current: 13.810
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ford in Talks with Geely for European Manufacturing Partnership
- Partnership Potential: Ford is reportedly in discussions with China's Geely Automobile Holdings for a partnership that could see Ford's European factory utilized for vehicle production, aiming to enhance competitiveness in the EV market.
- Technology Sharing: The talks also involve sharing vehicle technologies, including automated driving, which is expected to strengthen both companies' technological capabilities and market share in future mobility.
- Factory Location: Sources indicate that the Valencia, Spain plant is likely to be the primary production site for this collaboration, which will help Ford optimize its manufacturing footprint in Europe.
- Market Challenges: Despite backlash from U.S. lawmakers regarding Ford's partnership with Chinese battery maker CATL, the company continues to actively explore opportunities in the EV sector to navigate market competition and regulatory challenges.
See More
Ford and Geely in Talks for Partnership
- Partnership Potential: Ford and Geely are in discussions for a potential partnership, focusing on Geely possibly using Ford's European factory space, particularly in Valencia, Spain, which would aid Geely's expansion in the European market.
- Technology Sharing Framework: The talks also include a framework for shared vehicle technologies, such as automated driving, which could enhance both companies' technological capabilities and accelerate the development and launch of new models.
- Significant Negotiation Progress: After months of discussions, the negotiations centered on European manufacturing have advanced, with Ford recently sending a delegation to China to expedite talks with Geely, indicating a sense of urgency in their collaboration.
- Tariff Avoidance Advantage: Utilizing Ford's factory space would help Geely avoid EU tariffs on electric vehicles made in China, significantly reducing Geely's operational costs in the European market and enhancing its competitiveness.
See More
Consumer Reports' Top New Cars for 2026 Feature Electric Boost
- Electrification Trend: The 2026 Consumer Reports' best new cars list features all models as hybrids or electric vehicles, marking a significant shift towards electrification that meets consumer demands for both sustainability and cost-effectiveness.
- Hybrid Power Advantage: While full EV sales in the U.S. have declined due to the loss of federal tax credits, hybrid vehicle sales are rising, with automakers like Ford, General Motors, and Toyota increasing their hybrid offerings to meet market demand.
- Diverse Model Range: The list includes models like the Honda Civic Hybrid and Toyota Camry Hybrid, with the Camry's 2.5L engine achieving an impressive 48 mpg in testing, showcasing the balance of performance and efficiency in hybrid vehicles.
- Market Response: Consumer Reports highlights that hybrid vehicles not only offer quicker acceleration and quieter cabins but also lower long-term ownership costs, reflecting a growing market preference for efficient and eco-friendly vehicles, thus driving transformation in the automotive industry.
See More
California Proposes $200 Million EV Incentive Program
- Incentive Program Overview: California Governor Gavin Newsom has proposed a $200 million EV incentive program aimed at providing point-of-sale rebates for first-time buyers, intending to stimulate growth in the electric vehicle market.
- Automaker Participation: Automakers participating in the program will be required to match the incentive amount offered by the state, a move designed to enhance consumer purchasing power and ensure sustainable market development.
- Broad Eligibility: The program will apply to passenger vehicles priced up to $55,000 and SUVs, pickup trucks, and vans priced up to $80,000, while also including used EVs priced up to $25,000, demonstrating a focus on various consumer segments.
- Policy Context: This proposal comes after President Trump announced the elimination of the $7,500 federal EV credit, with Governor Newsom vocally opposing Trump's anti-EV stance and promising to propose a new EV credit program in 2024.
See More
Ford Motor Company Adjusts EV Strategy Amid Losses
- Massive EV Losses: Ford Motor Company anticipates approximately $19.5 billion in charges primarily linked to its electric vehicle (EV) business, marking one of the largest impairments in U.S. auto history and highlighting the challenges domestic automakers face in achieving their EV ambitions.
- Strategic Shift: Since 2023, Ford has incurred $13 billion in losses on its EV initiatives, prompting a pivot away from unprofitable projects towards higher-margin vehicles, including gas-powered models, hybrids, and extended-range EVs, aimed at enhancing profitability.
- Product Line Changes: The company plans to discontinue the pure electric version of its F-150 Lightning pickup, instead producing an extended-range variant, while also targeting a $30,000 EV pickup by 2027 to cater to consumer demand for practical, lower-cost electric options.
- Battery Factory Transformation: Ford is transforming its Kentucky EV battery factory into a battery-storage business serving utilities, renewable energy developers, and large-scale AI data centers, allowing the company to cut losses and focus on profitable segments.
See More
Ford Motor Company Faces Long-Term Underperformance Challenges
- Poor Stock Performance: Ford's shares have only grown 16% over the past decade, and even with cash dividends, the total return of 97% is significantly below the S&P 500's 325%, indicating the company's persistent underperformance in the market.
- Policy Uncertainty Impact: The Trump administration's tariff policies have significantly affected Ford, disrupting global automotive supply chains and complicating the company's future planning and production capacity, thereby increasing operational risks.
- Electric Vehicle Strategy Misstep: Ford's overcommitment to electric vehicles has resulted in a staggering $19.5 billion asset write-down, as the company plans to replace the poorly selling electric F-150 Lightning with a hybrid model, highlighting strategic miscalculations amid changing policies.
- Investor Confidence Issues: Although Ford's P/E ratio of 9.8 is relatively cheap, the lack of a stable strategic direction from management may lead to capital allocation mistakes, diminishing investor confidence in future growth and suggesting a search for more forward-looking investment opportunities.
See More
Ford in Talks with Geely for European Manufacturing Partnership
- Partnership Potential: Ford is reportedly in discussions with China's Geely Automobile Holdings for a partnership that could see Ford's European factory utilized for vehicle production, aiming to enhance competitiveness in the EV market.
- Technology Sharing: The talks also involve sharing vehicle technologies, including automated driving, which is expected to strengthen both companies' technological capabilities and market share in future mobility.
- Factory Location: Sources indicate that the Valencia, Spain plant is likely to be the primary production site for this collaboration, which will help Ford optimize its manufacturing footprint in Europe.
- Market Challenges: Despite backlash from U.S. lawmakers regarding Ford's partnership with Chinese battery maker CATL, the company continues to actively explore opportunities in the EV sector to navigate market competition and regulatory challenges.
See More
Ford and Geely in Talks for Partnership
- Partnership Potential: Ford and Geely are in discussions for a potential partnership, focusing on Geely possibly using Ford's European factory space, particularly in Valencia, Spain, which would aid Geely's expansion in the European market.
- Technology Sharing Framework: The talks also include a framework for shared vehicle technologies, such as automated driving, which could enhance both companies' technological capabilities and accelerate the development and launch of new models.
- Significant Negotiation Progress: After months of discussions, the negotiations centered on European manufacturing have advanced, with Ford recently sending a delegation to China to expedite talks with Geely, indicating a sense of urgency in their collaboration.
- Tariff Avoidance Advantage: Utilizing Ford's factory space would help Geely avoid EU tariffs on electric vehicles made in China, significantly reducing Geely's operational costs in the European market and enhancing its competitiveness.
See More
Consumer Reports' Top New Cars for 2026 Feature Electric Boost
- Electrification Trend: The 2026 Consumer Reports' best new cars list features all models as hybrids or electric vehicles, marking a significant shift towards electrification that meets consumer demands for both sustainability and cost-effectiveness.
- Hybrid Power Advantage: While full EV sales in the U.S. have declined due to the loss of federal tax credits, hybrid vehicle sales are rising, with automakers like Ford, General Motors, and Toyota increasing their hybrid offerings to meet market demand.
- Diverse Model Range: The list includes models like the Honda Civic Hybrid and Toyota Camry Hybrid, with the Camry's 2.5L engine achieving an impressive 48 mpg in testing, showcasing the balance of performance and efficiency in hybrid vehicles.
- Market Response: Consumer Reports highlights that hybrid vehicles not only offer quicker acceleration and quieter cabins but also lower long-term ownership costs, reflecting a growing market preference for efficient and eco-friendly vehicles, thus driving transformation in the automotive industry.
See More
California Proposes $200 Million EV Incentive Program
- Incentive Program Overview: California Governor Gavin Newsom has proposed a $200 million EV incentive program aimed at providing point-of-sale rebates for first-time buyers, intending to stimulate growth in the electric vehicle market.
- Automaker Participation: Automakers participating in the program will be required to match the incentive amount offered by the state, a move designed to enhance consumer purchasing power and ensure sustainable market development.
- Broad Eligibility: The program will apply to passenger vehicles priced up to $55,000 and SUVs, pickup trucks, and vans priced up to $80,000, while also including used EVs priced up to $25,000, demonstrating a focus on various consumer segments.
- Policy Context: This proposal comes after President Trump announced the elimination of the $7,500 federal EV credit, with Governor Newsom vocally opposing Trump's anti-EV stance and promising to propose a new EV credit program in 2024.
See More
Ford Motor Company Adjusts EV Strategy Amid Losses
- Massive EV Losses: Ford Motor Company anticipates approximately $19.5 billion in charges primarily linked to its electric vehicle (EV) business, marking one of the largest impairments in U.S. auto history and highlighting the challenges domestic automakers face in achieving their EV ambitions.
- Strategic Shift: Since 2023, Ford has incurred $13 billion in losses on its EV initiatives, prompting a pivot away from unprofitable projects towards higher-margin vehicles, including gas-powered models, hybrids, and extended-range EVs, aimed at enhancing profitability.
- Product Line Changes: The company plans to discontinue the pure electric version of its F-150 Lightning pickup, instead producing an extended-range variant, while also targeting a $30,000 EV pickup by 2027 to cater to consumer demand for practical, lower-cost electric options.
- Battery Factory Transformation: Ford is transforming its Kentucky EV battery factory into a battery-storage business serving utilities, renewable energy developers, and large-scale AI data centers, allowing the company to cut losses and focus on profitable segments.
See More
Ford Motor Company Faces Long-Term Underperformance Challenges
- Poor Stock Performance: Ford's shares have only grown 16% over the past decade, and even with cash dividends, the total return of 97% is significantly below the S&P 500's 325%, indicating the company's persistent underperformance in the market.
- Policy Uncertainty Impact: The Trump administration's tariff policies have significantly affected Ford, disrupting global automotive supply chains and complicating the company's future planning and production capacity, thereby increasing operational risks.
- Electric Vehicle Strategy Misstep: Ford's overcommitment to electric vehicles has resulted in a staggering $19.5 billion asset write-down, as the company plans to replace the poorly selling electric F-150 Lightning with a hybrid model, highlighting strategic miscalculations amid changing policies.
- Investor Confidence Issues: Although Ford's P/E ratio of 9.8 is relatively cheap, the lack of a stable strategic direction from management may lead to capital allocation mistakes, diminishing investor confidence in future growth and suggesting a search for more forward-looking investment opportunities.
See More
