Ford Motor Company and Alibaba Group signed a three-year agreement to use the Chinese company's business units in operation system, cloud computing, digital marketing and online retail to further develop mobility services, connectivity, cloud computing, artificial intelligence, and digital marketing.

In the initial phase, Ford and Alibaba will explore a pilot study on digital solutions for new retail opportunities at various stages of the automotive ownership cycle, from pre-sales and test drives to leasing options.

In a separate development, Ford says it will move planned production of a small electric-powered sport utility vehicle to a plant in Mexico instead of a Michigan factory. Lower labor costs likely will help the business case for the model, Bloomberg reports.

The production shift will allow Ford to boost planned output of self-driving vehicles at its Flat Rock, Michigan factory. Ford is increasing its investment by $200 million and adding 150 more jobs to the Michigan plant as part of the shift, according to Bloomberg. The driverless car is to debut in 2021.

The SUV to be built in Mexico starting in 2020 will go 300 miles on a single charge and is part of a planned $4.5 billion overhaul of Ford’s lineup to add 13 electric or hybrid models.