Ford Motor (F) and Chinese automaker Geely (GELYF) are in talks about a possible manufacturing and technology partnership, according to a Reuters report, as carmakers look to lower costs and share technology. Following the news, Geely’s Hong Kong-listed shares are trading higher.
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Under the discussions, Geely could use Ford’s factory space in Europe to build vehicles for the region. Producing cars in Europe would help Geely avoid European Union tariffs of up to 37.6% on electric vehicles imported from China, which were introduced last year.
Beyond manufacturing, the two companies also plan to share vehicle technologies, such as software for connected cars and automated driving. Ford has said it needs to close the gap with rivals such as Tesla (TSLA) and China’s BYD (BYDDF), as Chinese automakers have moved faster in EV and vehicle software in recent years.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 35% rally in its share price over the past year, the average F price target of $13.87 per share implies 1.02% upside potential.
