Ford Motor Co.
) has announced the collaboration with
General Electric Company
) 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.
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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
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
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
Ford, which competes with
Toyota Motor Corporation
), 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.