Ford is teaming up with Alibaba to sell cars online in China

Business Insider | 12/7/2017 | Michelle Jones, ValueWalk
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Reuters reports that Ford is expected to sign an agreement with Alibaba that could allow it to try its hand at selling cars on the company’s online platform in China.

The agreement would also reportedly allow the automaker to test a store concept called an “Auto Vending Machine.

Ford - Business - Model - Lawmakers - Regulators

If Ford likes the business model, there’s no telling how long it would take to convince lawmakers and regulators to allow something similar in the U.S.

Auto dealerships in the U.S. have quite a lot of lobbying power, which means strong influence over lawmakers who can write laws in their favor or against them, but what would happen if automakers turn their backs on dealerships and lobby only for themselves? We could find out in the coming years if Ford Motor Company signs a deal with Alibaba Group Holding Ltd in China and finds success.

Source - Automaker - Reuters - Ford - Agreement

Citing a source at the automaker, Reuters reports that Ford is expected to sign an agreement with Alibaba that could allow it to try its hand at selling cars on the company’s online platform in China. The deal could be announced as early as tomorrow, and it would reportedly allow the U.S.-based automaker to sell cars on Tmall, which is Alibaba’s e-commerce division.

In addition to Ford selling cars with Alibaba, the agreement would also reportedly allow the automaker to test a store concept called an “Auto Vending Machine.” The sales on Tmall and having its own store concept will allow the automaker to test direct sales of its vehicles—a sales model that has been met with heavy opposition in the U.S. Tesla has been barred from sales in many states due to its direct sales model because automakers are required to sell their vehicles through dealerships in most states.

Reuters - Source - Ford - Executive - Chairman

According to Reuters’ source, Ford Executive Chairman Bill Ford Jr. and Ford Chief...
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