Dec. 12, 2017—Ford has teamed up with Alibaba Group Holding Limited to explore opportunities in the connected car space.
Following the recent news of the partnership, Alibaba saw its company share price spike 1.07 percent, according to nasdaq.com, eventually closing at $174.47.
The e-commerce conglomerate signed a three-year agreement with the U.S. automaker in an effort to identify new ways of selling vehicles in China.
Ford will now use Alibaba’s T-Mail online marketplace to sell cars in China.
Besides sales, the two companies will work together in many other areas, such as cloud computing for elements such as artificial intelligence, mobility, and connectivity.
Alibaba’s partnership with Ford is part of a new-retail strategy in which the conglomerate hopes to leverage its big-data capacities to tap into new retail opportunities.
The company reportedly feels that, while many customers prefer venturing to a dealership showroom, still more are intrigued by the possibility of doing research and potentially purchasing online.
