Ford Motor has held preliminary discussions with China’s Xiaomi about forming a U.S.-based joint venture to build electric vehicles, according to people familiar with the matter who spoke to the Financial Times. The talks, which began late last year, would leverage Xiaomi’s expertise in consumer electronics and Ford’s manufacturing footprint. Sources indicate both parties have expressed interest in investing significant capital—potentially exceeding $1 billion—to develop a dedicated EV assembly line in the Midwest. Ford executives view the partnership as a way to accelerate production of affordable, connected electric models, while Xiaomi hopes to expand its automotive footprint outside of China. No definitive agreement has been reached and any deal would be subject to regulatory approval in both countries.

Investors who bought $100 of Ford stock in late January 2021 would see that holding worth approximately $158 today, reflecting a total return of 58%. This performance notably trails the S&P 500’s total return of roughly 90% over the same period. Weak profit margins, slower EV rollout relative to peers, and ongoing restructuring costs have weighed on Ford’s share performance. With adjusted operating margins in the low single digits and full-year net income having swung between gains of $3 billion and losses of $1.5 billion over the past three years, analysts caution that Ford’s current business model offers limited catalysts for a sustained rebound absent breakthroughs in EV cost reduction or new revenue streams.

For the fourth quarter ending December 31, Ford will record a $600 million pretax charge related to the remeasurement of employee pension and postretirement benefit plans. The charge splits roughly two-thirds to U.S. plans—driven by lower discount rates and higher-than-expected healthcare trend assumptions—and one-third to international plans, where extended life expectancy estimates were a key factor. After accounting for jurisdictional tax effects, Ford expects net income to decline by about $500 million. The company emphasizes its pension funds remain fully funded and that this one-time accounting adjustment will not alter its projected pension contributions of $2.3 billion for 2026.