Exclusive - Ford set for China tie-up with Alibaba to test online, direct auto sales: source

Ford Motor Co is expected to sign as early as Thursday a deal with Alibaba Group Holding Ltd which may allow the U.S. automaker to test selling cars to consumers in China through Alibaba’s online retail arm Tmall, as well as via a new “auto vending machine” store concept, according to a Ford source familiar with the matter. 

Representatives of Ford and Alibaba, including Ford Executive Chairman Bill Ford Jr. and Ford CEO Jim Hackett, are expected to be in Hangzhou on Thursday to sign a letter of intent that outlines the scope of the new partnership.

The partnership would be part of Ford’s effort to overhaul its China strategy to revive the growth momentum it has lost in recent months. 

But Ford could also use Tmall’s new retail concept called the “Automotive Vending Machine” — a multi-storey parking garage that partly resembles a giant vending machine — to sell directly to consumers, the source said. Those cars could come directly from Ford or from its dealers but the details are still to be worked out, the source added. 

According to Alibaba, consumers can use their phones to browse through the cars garaged in the store and choose to either immediately buy one or test drive it. The vehicle would be delivered to them on the ground floor.