Ford Motor Company (F - Free Report) announced that it has signed a letter of intent (LOI) with Baidu, Inc. (BIDU - Free Report) to co-develop artificial intelligence (AI) and connectivity solutions for Ford’s vehicles in China. Baidu offers a Chinese Internet searching platform.
By combining Baidu's innovative AI technology and Ford’s engineering expertise, the team aspires to transform the mobility system and produce the next-generation in-vehicle experience for consumers in China. Based on Baidu’s DuerOS conversational AI platform, Ford will develop in-vehicle infotainment systems and digital services. The DuerOS platform has features to recognize voice and image, enabling vehicle owners to control and communicate with their cars in their native language, without any difficulty to access information and services.
Further, both companies aim to set up a joint-lab to look for innovation opportunities across automotive and mobility businesses in China. In order to focus more on digital marketing, Ford and Baidu will also assess prospects in technologies and big data.
Ford Motor Company Price and Consensus
Per management, the collaboration is in sync with the company’s 'In China, For China' strategy. Through this partnership, Ford aims to offer smart products and solutions to its customers.
In the past three months, Ford’s stock has moved up 3.1%, underperforming the 11.5% increase of the industry it belongs to.
Zacks Rank & Stocks to Consider
Currently, Ford has a Zacks Rank #3 (Hold) while Baidu has a Zacks Rank #1 (Strong Buy). A few other stocks in the auto space to consider are Toyota Motor Corporation (TM - Free Report) and Ferrari N.V. (RACE - Free Report) , each sporting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Toyota has an expected long-term growth rate of 5.7%. Shares of the company have risen 21.8% over the past year.
Ferrari has an expected long-term growth rate of 17.3%. Shares of the company have risen 57.3% over the past year.
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