Ford Motor Co. (F - Free Report) has announced the collaboration with General Electric Company (GE - Free Report) wherein the latter will purchase Ford’s 2,000 C-MAX Energi plug-in hybrids in order to convert half of its global fleet with alternative fuel vehicles. Under the deal, Ford will jointly offer General Electric’s alternative fuel infrastructure technology, including WattStation charging stations and CNG natural gas fueling station to customers.
The purchase of C-MAX Energi by General Electric is a part of its commitment for ecomagination. Through this strategy, the company provides innovative solutions that maximize resources utilization, drive economic performance and support the world in smooth functioning.
General Electric focuses on providing its customers more economical and eco-friendly vehicles, thereby adding value to the customers. After the purchase, General Electric will have a fleet of 5000 vehicles with alternative fuel. The company has set a target of having 25,000 vehicles with alternative fuel.
The partnership will mutually benefit both the companies. Both General Electric and Ford are focusing on promoting energy saving and advanced technology for the vehicles. Ford will be launching six new electrified vehicles to meet the rising demand for fuel efficient vehicles.
Both the companies will be working with the researchers from Georgia Institute of Technology to study employee driving and charging habits. This move will improve the efficiency of the electric vehicles and charging performance. Ford also plans to share the research results with the other companies interested in having electric vehicles in their fleet.
Michigan-based Ford is one of the largest automobile producers globally. The company is divided into two segments: Automotive and Financial services. Although the U.S. is Ford’s primary selling ground, Europe, South America, and the Asia-Pacific constitute its other major markets.
We appreciate the company’s expansion plan in both the mature and emerging markets, continuous focus on hybrid vehicles and plans for launching 6 new Lincoln models in the next 3 years. However, we are concerned about its sluggish European and South American operations together with disappointing results from its Financial Services.
Ford, which competes with Toyota Motor Corporation (TM - Free Report) , maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. We have a long-term (more than 6 months) Neutral recommendation on its shares.