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Ford to Produce All-Electric Cars in China Via Joint Venture

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Ford Motor Company (F - Free Report) has signed a Memorandum of Understanding (MoU) with Anhui Zotye Automobile Co., Ltd., an all-electric vehicles manufacturer. Objectives of this agreement are to inspect the formation of a joint venture that would look into growth, manufacturing and after-sales servicing of all-electric passenger models in China.

The goals of MoU are in line with Ford’s vision of sustainable auto growth and the company’s dealing with issues related to climatic changes and air quality improvement.

Per Peter Fleet, group vice president and president of Ford Asia Pacific, electric automobiles will be a major part of China’s future and the company is excited about offering all-electric models in the country, identified as the largest auto market.

Ford Motor Company Price and Consensus

Manufactured vehicles will be sold under a brand owned by the joint venture, aiming for a sizable share in China’s all-electric auto market.

Previously in April 2017, Ford announced vehicle electrification plans for China, including launch of two new electric vehicles on the land. By 2025, the company targets to ensure 70% of vehicles sold in the nation are electric.

In order to promote use of electric vehicles for long distance travels in other parts of the world, Ford is teaming up with BMW, Daimler and Volkswagen (including Audi and Porsche) to set up an electric charging network in Europe, based on the Combined Charging System standard technology.

Construction of the charging stations will commence in 2017 with initial goal of 400 locations. Within 2020, the companies look to build up a network of more than thousand charging points. This move will serve the purpose of facilitating adoption of electric vehicles in Europe.

Price Performance



Ford’s shares have declined 15.4% in the last six months, substantially underperforming the 1.6% increase of the industry it belongs to.

Zacks Rank & Key Picks

Ford currently carries a Zacks Rank #3 (Hold).

Some better-ranked automobile stocks are Continental AG (CTTAY - Free Report) , Cummins Inc. (CMI - Free Report) and Fox Continental Holding Corp. (FOXF - Free Report) , all currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Continental has a long-term growth rate of 7.9%.

Cummins has an expected long-term earnings growth rate of 12.1%.

Fox Factory has a long-term growth rate of 16.1%.

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