Ford and Alibaba explore strategic collaboration

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Ford Motor Company and Alibaba Group signed a Letter of Intent on Thursday to jointly explore areas of cooperation in connectivity, cloud computing, artificial intelligence, mobility services and digital marketing.

Jim Hackett, Ford Motor Company President & CEO, and Daniel Zhang, Alibaba Group CEO, met at Alibaba’s headquarter in Hangzhou on Thursday and witnessed the signing of the “Letter of Intent” between the two companies.

Jason Luo, Chairman and CEO of Ford China, and Simon Hu, SVP of Alibaba, President of Alibaba Cloud and President of AliOS signed the strategic cooperation agreement on behalf of both organizations.

Under the three-year agreement, both companies will jointly explore the areas of cooperation that are re-shaping the automotive industry in China and around the world.

Ford will cooperate with Alibaba’s four business units in operating systems, cloud computing, digital marketing and online retail respectively - namely AliOS, Alibaba Cloud, Alimama and Tmall - and jointly explore a variety of areas of cooperation, including mobility services, connectivity, cloud computing, artificial intelligence and digital marketing.

Alibaba VP Hu Xiaoming and Ford China CEO Jason Luo on the signing of the strategic cooperation agreement. /Ford Photo

“China is one of the world’s largest and most dynamic digital markets, thriving on innovation with customers’ online and offline experiences converging rapidly. Collaborating with leading technology players builds on our vision for smart vehicles in a smart world to reimagine and revolutionize consumers’ mobility experiences,’’ said Jim Hackett, Ford’s President and CEO.

“Alibaba is excited to redefine the consumer journey and user experience for automobiles together with Ford Motors,” said Alibaba Group CEO Daniel Zhang. “Our data-driven technology and platform will expand the definition of car ownership beyond just having a mode of transportation and into a new medium for smart lifestyle.”

In the initial phase, Ford and Alibaba will explore a pilot study on digital solutions for new retail opportunities at various stages of the automotive ownership cycle, from pre-sales and test drives to financial leasing options.

Alibaba will gain from Ford’s automotive leadership in the running of complex global operations, with a legacy of more than 100 years in developing, manufacturing and selling vehicles globally, and rich experience in providing trusted service through established global dealer networks.

Meanwhile, Ford can also leverage the wide spectrum of Alibaba’s resources including new retail services, Internet of Things solutions, cloud computing and data technologies to transform vehicle ownership in the new retail era.