Ford plans to sell passenger cars online in China via Alibaba’s Tmall e-commerce platform

Ford Motor is expected to sign as early as Thursday a deal with Alibaba Group Holding, which may allow the US carmaker 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 Jnr 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.

According to the source, who did not want to be named because he is not authorised to speak with reporters, the deal is intended to position the Dearborn, Michigan, carmaker 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.

Ford’s global chief spokesman Mark Truby said the company is expected to make an announcement on Thursday in Hangzhou, where Alibaba is based, but declined to comment in advance.

Alibaba spokeswoman Crystal Liu declined to comment.