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Ford Motor Co is expected to sign a deal with Alibaba Group Holding Ltd which may allow the US automaker to test selling cars to consumers in China through Alibaba’s online retail arm Tmall Women's Nike Air VaporMax 97 Silver Bullet UK , 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 today to sign a letter of intent that outlines the scope of the new partnership.


According to the source, who did not want to be named because he is not authorized to speak with reporters, the deal is intended to position the Dearborn Men's Nike Air Vapormax CS Triple Black UK , Michigan, automaker for an emerging Chinese marketplace where more cars could be sold online.


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.


Alibaba spokeswoman Crystal Liu declined to comment.


The source said the proposal could mean that cars purchased online are delivered to buyers by franchised Ford retail stores and would be maintained and repaired by them.


But Ford could also use Tmall’s new retail concept called the “Automotive Vending Machine,” a multi-story 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.


The model allows shoppers with good credit to purchase their new ride with a 10 percent down payment and then make monthly payments for the car purchase through Alibaba’s affiliate Alipay Men's Nike Vapormax Flyknit Team Red UK , according to Alibaba.


Ford believes dealers would likely agree to this direct retailing model because they still get to service cars sold through Tmall, the Ford source said.


The move, though, could be potentially problematic for dealers, some industry experts said.


“When online sales and direct sales volume was small that’s one thing. But if this format gained steam, it would definitely impact dealers Men's Nike Vapormax Flyknit Cool Grey UK ,” said Yale Zhang, head of Shanghai-based consultancy Automotive Foresight. “Retail innovation is great, but it is by its nature disruptive and can’t keep everybody happy.”


The danger is that the dealers lose out not only on a lot of car sales but also the potentially lucrative auto financing aspect of their traditional business.


Direct selling by auto brands is not always possible in many markets around the world. In the United States, for example, because of franchise auto dealer operators’ political clout, except for a small number of states Men's Nike Air VaporMax LACELESS Pure Platinum White UK , direct selling is largely not possible.


The source said Ford is “behind in using big data” to monitor sales trends and effectively market its cars and the move to online sales as well as the access to Tmall’s massive database of information on consumers would help it to catch up.


Online auto sales volumes are currently limited in China because car buyers want to be able to see, touch and drive cars before buying them, said Zhang. The ability to test drive a car ordered online could change that.


Ford’s China sales have been sluggish in recent months in part because it has failed to catch on to rapidly changing trends in the marketplace, including the rise of entry-level cars popular in smaller cities, where demand is booming.


Ford’s sales in the first 10 months of this year were 938,570 Off-White X Nike Air Vapormax Black UK , a decline of 5 percent from the same period in 2016, against a 2.2 percent gain to 3.13 million for hometown rival General Motors.


(Agencies)

Cute mini figures on the edge of cups from Japan A figure of "Cup no Fuchiko" (literally "Fuchiko on the edge of the cup") is on display at the office of Kitan Club on August 19, 2014 in Tokyo, Japan. [PhotoIC] Different "Cup no Fuchiko" figures pose on the edge of a glass on Aug 19, 2014 in Tokyo, Japan. [PhotoIC] Cute mini figures on the edge of cups from Japan Different "Cup no Fuchiko" figures pose on the edge of a glass on Aug 19 Off-White X Nike Air Vapormax White UK , 2014 in Tokyo, Japan. [PhotoIC] A figure of "Cup no Fuchiko" is on display at the office of Kitan Club on August 19, 2014 in Tokyo, Japan. [PhotoIC] A figure of "Cup no Fuchiko" is on display at the office of Kitan Club on August 19, 2014 in Tokyo, Japan. [PhotoIC] Seita "Koho" Shiki shows different kinds of "Cup no Fuchiko" figures climbing on the edges of a few glasses at the Kitan Club office on Aug 19 Men's Nike Vapormax Pale Grey UK , 2014 in Tokyo, Japan. Mr. Shiki is responsible for public relations at the company. [PhotoIC]

These mini figures are popular among young Japanese women who often use them when composing pictures of their lunch. The name "Cup no Fuchiko" translates to "office lady, or OL, on the edge of a cup" and the figures are sold as drink ornaments. Made by Kitan Club, it was created by the manga artist Katsuki Tanaka. There are currently 21 models of "Cup no Fuchiko" and Kitan Club has also made capsule toys from famous characters such as Street Fighter II, Moomin Men's Nike Vapormax Collegiate Navy UK , and Hello Kitty.


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