Volkswagen and Ford to Announce an Important Business Alliance

Published on January 11, 2019 in News by Michel Deslauriers

Manufacturers Volkswagen and Ford are currently in deep negotiations to help each other out in the commercial vehicle industry, but now, Reuters is expecting the imminent announcement of a much more important strategic alliance.

The two automotive giants are seeking collaboration in order to share development costs of new technologies, notably in regards to electric powertrains and autonomous driving. Volkswagen could benefit from Ford’s research on self-driving cars, and Ford could borrow the MEB electric vehicle platform that will underpin the upcoming Volkswagen I.D., but Reuters points out that both companies said the potential alliance wouldn’t involve a merger or equity stakes.

In addition, the commercial vehicle collaboration would allow Volkswagen to sell their own versions of the Ford Transit van and the Ford Ranger midsize pickup truck, as well as build their vehicles in Ford assembly plants. The association would allow Ford to reduce costs as the company is about to start a major restructuration of its operations in Europe, cutting slow-selling models in the process.

According to Reuters’ sources, this new alliance could be announced as early as next week during the Detroit Auto Show.

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