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Stocks F / Ford Motor Company


Subject:  Re: China! Date:  3/1/2013  11:17 AM
Author:  TMFBreakerRob Number:  17440 of 18388

This week a broker called at my office and told me that there is a contract pending between Ford and Geely - his assumption ist that the share price will hit £ 40 !!! (I am based in Switzerland and cold calls are not prohibited in my country. I was laughing at him saying that this is all smoke and mirror...
Does anyone in the Fools universe know something about such a potential cooperation ?
-- marsuculix

I haven't heard of anything since Ford sold Volvo to Geely.... but Volvos are still being built in Ford plants per the sales agreement.

Given Ford's overall strategy of developing multiple vehicles off a small number of platforms, I very much would doubt that Ford would want to sell any Geely vehicle and I find it difficult to see where Ford would want to sell vehicles built and designed by Ford to Geely (beyond the current Volvo legacy products).

Maybe a component sharing agreement? Could be, although I find myself doubting that Geely's quality meets Ford's expectations.

In any case, I can't see ANY agreement between Ford and Geely having a huge effect on Ford's performance or it's stock price. Geely just isn't all that important.

Now..... if BMW decided it would be great to be acquired by Ford, THAT would be a game changer..... but that's too much of a fantasy. LOL I'd say the broker's suggestion is also a bit of a fantasy as well. :)

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