Ford and Xiaomi Deny Partnership Talks for U.S. Market Entry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Denial of Partnership: Both Ford and Xiaomi have denied the Financial Times report regarding preliminary talks for a partnership, stating the claims are “completely false,” which clarifies their market strategies and mitigates potential misunderstandings and market volatility.
- Market Potential Discussion: Although Ford explored collaborations with Xiaomi and other Chinese firms like BYD for the U.S. market, CEO Jim Farley previously acknowledged the significant impact of Xiaomi's SU7 model, indicating his awareness and interest in the Chinese EV market.
- Political Risk Warning: John Moolenaar, chair of the House China committee, cautioned that a partnership with Xiaomi would be seen as Ford turning its back on American and allied partners, emphasizing that joint ventures with Chinese companies often end poorly for American firms, highlighting the political risks in cross-border collaborations.
- Financial Impact Analysis: Ford is projected to incur a $600 million loss related to pension plans, which may lead the company to adopt a more cautious approach in strategic partnerships, particularly with Chinese firms, affecting its future market decisions.
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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: 14.000
Low
11.00
Averages
13.65
High
16.00
Current: 14.000
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.
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Ford and Xiaomi Deny Partnership Talks for U.S. Market Entry
- Denial of Partnership: Both Ford and Xiaomi have denied the Financial Times report regarding preliminary talks for a partnership, stating the claims are “completely false,” which clarifies their market strategies and mitigates potential misunderstandings and market volatility.
- Market Potential Discussion: Although Ford explored collaborations with Xiaomi and other Chinese firms like BYD for the U.S. market, CEO Jim Farley previously acknowledged the significant impact of Xiaomi's SU7 model, indicating his awareness and interest in the Chinese EV market.
- Political Risk Warning: John Moolenaar, chair of the House China committee, cautioned that a partnership with Xiaomi would be seen as Ford turning its back on American and allied partners, emphasizing that joint ventures with Chinese companies often end poorly for American firms, highlighting the political risks in cross-border collaborations.
- Financial Impact Analysis: Ford is projected to incur a $600 million loss related to pension plans, which may lead the company to adopt a more cautious approach in strategic partnerships, particularly with Chinese firms, affecting its future market decisions.
Continue Reading