Ford Motor Co. (NYSE:F) is in talks with China’s BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) on a potential partnership that would see the U.S. automaker purchase batteries for some of its hybrid-vehicle models, as Ford reshapes its powertrain strategy and pulls back from a heavy push into fully electric vehicles.
As enthusiasm for full EV adoption cools, Ford and its peers increasingly view hybrids as a more immediate growth opportunity, the WSJ reported.
Ford’s hybrid sales rose 18% year over year in the fourth quarter to about 55,000 vehicles, underscoring the momentum behind the shift.
According to the report, the talks remain fluid, and there is no guarantee a deal will ultimately be reached.
Citing people familiar with the discussions, the Wall Street Journal reported that the two companies are still working through how such an arrangement might be structured.
One option under consideration would involve Ford importing BYD-made batteries to its manufacturing facilities outside the U.S.
If completed, the partnership would link Ford with China’s largest automaker, a company that has unsettled much of the U.S. auto industry with its ability to build lower-cost vehicles equipped with advanced technology.
Rising Hybrid Sales Highlight Strategic Transformation
For Ford, the potential tie-up could help address a growing need for a reliable battery supply as it expands its hybrid offerings.
Ford’s interest in additional battery supply comes after the automaker said last month it would scale back EV production amid weaker demand and record roughly $19.5 billion in charges, primarily tied to its EV business.
Ford now expects about half of its global sales by 2030 to come from hybrids, extended-range plug-in hybrids, and all-electric vehicles combined.
The discussions come against a backdrop of heightened concern among American automakers over the competitive threat posed by Chinese brands. High U.S. tariffs and looming software restrictions have largely kept Chinese automakers out of the domestic market, though interest in future entry remains.
Price Action: F stock is down 0.07% at $13.80 during the premarket session at the last check on Friday.
Photo Courtesy: Jonathan Weiss via Shutterstock
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