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F Stock Up 3%, Ford Enters Six-Year Partnership with Google

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by Ibukun Ogundare · 3 min read
F Stock Up 3%, Ford Enters Six-Year Partnership with Google
Photo: Depositphotos

Ford and Google are considering leveraging Google’s cloud to enable a system where Ford users will receive maintenance information and other updates on trade-in opportunities.

On the 1st of February, American multinational automaker Ford Motor Company (NYSE: F) announced its partnership with the tech giant Google LLC (NASDAQ: GOOGL). The new partnership is aimed to accelerate Ford’s ongoing $11 billion restructuring plan.

Per the deal, Google will provide Ford’s growing in-vehicle connectivity and cloud computing services. Google will also begin to provide other technology services to Ford, following the six-year deal.

Ford Partners with Google: Details

According to a CNBC report, Ford and Lincoln vehicles will also begin to sport Google Maps, Android, Google Assistant, and Google play from 2023. Under the deal, Google’s cloud will also provide other technological services. CNBC said that Ford and Google are considering leveraging Google’s cloud to enable a system where Ford users will receive maintenance information and other updates on trade-in opportunities.

Ford CEO Jim Farley noted that a new group called “Team UpShift” would be formed and will also consist of employees from both Google and Ford. According to Ford’s CEO, Team UpShift will leverage Google’s services and data expertise to improve Ford’s operations. That way, the automaker’s customers will begin to enjoy a smooth experience with their vehicles.

Additionally, Google will offer artificial intelligence (AI) in supply chain logistics, manufacturing, and other areas.

Farley has been working on restructuring since he became the automaker’s CEO last year. Since he occupied the role of the CEO in October, Ford has advanced about 60%.

Speaking to CNBC on the partnership, Farley said:

“One of the most important parts of our strategy is to partner. That means that we have to get out of the business of doing generic things that we do not add value, like navigation systems and a lot of the in-car entertainment experience.”

Speaking further, the CEO added that Ford has been “keeping up with basically a generic experience” involving expenses worth hundreds of millions.

Without stating the exact figures, Farley revealed that the new deal with Google is worth “hundreds of millions.”

Furthermore, Farley said that Ford analyzed other options before deciding to partner with Google. He said Ford likes and prefers Google’s cloud services.

Noting that the in-car connectivity is essential in staying connected to customers, he added:

“It’s a tremendous opportunity. Bigger than electrification. All the digital capability and conductivity and the digital ecosystem outside of the vehicle are all coming together to a loyalty model, where people have a much more difficult time switching brands.”

F Stock Performance

Ford stock climbed over 3% during mid-day trading on the 1st of February. At press time, Ford is up 1.48% to $10.99 at after-hours trading. The automaker has gained 20.60% over the past year and added about 23% in its year-t-date record.

Data published by MarketWatch showed that Ford has grown by 40.47% in the last three months and increased further by over 27% over the past month. In the last five days, however, the automaker company has declined by 4.07%.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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