Ford, VW Agree to Form Global Alliance
Photo: Ford Motor Company
After much rumor and intrigue, Ford Motor Company and Volkswagen AG announced in January plans to form an alliance that will lead to the joint development of commercial vans and midsize pickup trucks by 2022. The partnership is primarily focused on products in Europe and is driven toward improving annual pre-tax operating results for both companies by 2023.
The venture between Ford and VW will not involve cross-ownership. Rather, a joint committee will oversee the partnership between the two automakers with Volkswagen CEO Dr. Herbert Diess and Ford CEO Jim Hackett joining senior executives for both companies in leadership roles.
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In addition to van and pickup production, Ford and VW enter into a memorandum of understanding that will lead to the joint development of autonomous and electric vehicles as well as mobility services. There is also room for both companies to enter into agreements for future collaboration on additional programs.
“Over time, this alliance will help both companies create value and meet the needs of our customers and society,” said Hackett. “It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility.”
“Volkswagen and Ford will harness our collective resources, innovation capabilities, and complementary market positions to even better serve millions of customers around the world,” said Diess. “At the same time, the alliance will be a cornerstone for our drive to improve competitiveness.”
Ford and Volkswagen will share development costs and manufacturing duties for future midsize pickups expected to hit the European market by 2022 — likely the next-generation Ford Ranger and Volkswagen Amarok. Ford will also concentrate on large commercial vans, while VW plans to put forth a new city van.
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