Ford Joins with General Electric - Analyst Blog
November 23 2012 - 8:32AM
Zacks
Ford Motor Co. (F) has announced the
collaboration with General Electric Company (GE)
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), 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.
FORD MOTOR CO (F): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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