German and American manufacturers reveal expanded link-up, including collaboration on electric tech, at motor show
James Attwood, digital editor
15 January 2019

Ford and Volkswagen have confirmed the first details of their broad ‘global alliance’, which will begin with the two pairing up to deliver commercial vehicles but could expand to include electric and autonomous cars.

The two companies will initially team up to develop vans and medium-size trucks for global markets, with the first products of the alliance likely to be mid-size pick-ups in 2022. The agreement is likely to involve Volkswagen developing a van based on Ford’s Transit platform and could involve joint development of the next-generation Ford Ranger and Volkswagen Amarok pick-ups.

The two have also signed a memorandum of understanding to “investigate collaboration” on electric and autonomous vehicles and mobility services, plus they say they're open to considering “additional vehicle programmes” in the future.

Ford boss Jim Hackett said the alliance will “help both companies create value and meet the needs of our customers and society” and “give us the opportunity to collaborate on shaping the next era of mobility”.

Volkswagen boss Herbert Diess added that the alliance “will be a cornerstone for our drive to improve competitiveness”.

The alliance will be governed by a joint committee headed by Hackett and Diess and does not involve any cross-ownership between the two firms. 

The news follows an announcement in June that the companies were looking to collaborate on the development of future commercial vehicles, among other projects. Ford's president of global markets, Jim Farley, called this move an example of Ford’s commitment to “leveraging adaptive business models”. 

Both Volkswagen and Ford are keen to introduce new electric vehicles to the European market, where strict regulations are being imposed on the development and sale of petrol and diesel vehicles. Volkswagen has previously stated its intention to produce 2-3 million electric cars by 2025.

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Ford and Volkswagen, alongside BMW and Daimler, are co-owners of the Ionity scheme, which is developing a network of ultra-fast charging stations across Europe. 

The alliance is not the first of its kind; last year, Honda invested $2.75 billion in General Motors' self-driving division. The Japanese and American companies plan to challenge tech giants Apple and Google with a new range of driverless taxis. 

Established car makers around the world are beginning to shift their focus entirely to researching and developing zero-emissions and self-driving vehicles as global legislation aims to reduce pollution.

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Comments
20

1 November 2018

 Maybe the way forward with transport for the masses is for market leaders is to work together?, well, why not?, one valid reason why it couldn’t work.

Peter Cavellini.

1 November 2018

Ford have next to nothing in the BEV market place and won't have either within the next 3 years despite press release saying they're be releasing 20 or so within the next 4 years.  Been left behind in this field unlike JLR.

VAG :- Not sure what they'll get from the deal other than money. Their BEV has been signed off and they're on their way to tooling up for 2020, OR are they??? Maybe it's proving harder and more expensive than the great VAG thought 

 

typos1 - Just can’t respect opinion

1 November 2018
Both car giants represent decadent motoring. Both are completely outclassed by the rivals Hyundai at one end of the spectrum, Tesla at the other. Their chance of catching up on their own is that of a snowflake's in hell. Tesla already has more market value than Ford. By the year end they look all set to overtake Porsche in sales charts. Pooling resources should give these laggards a fair chance against competition.

2 November 2018
fadyady wrote:

Both car giants represent decadent motoring. Both are completely outclassed by the rivals Hyundai at one end of the spectrum, Tesla at the other. Their chance of catching up on their own is that of a snowflake's in hell. Tesla already has more market value than Ford. By the year end they look all set to overtake Porsche in sales charts. Pooling resources should give these laggards a fair chance against competition.

 

Judging the position of a company by stock market value is pretty poor way of judging their long term future. Tesla have been pioneers in BEVs, but the big boys, in particular those in Germany are tooling up and will easily surpass them in years to come unless Tesla need to make a complete step change in quality and make significant improvements in replacement models to stand a chance of retaining their position. Electric drivetrains are relatively straightforward to build, the main issue has been battery cost and capacity. The harder part is actually building vehicles in large numbers at high quality. The big manufacturers know how to do this, and Tesla have demonstrtaed just how hard it can actually be.

15 January 2019

The reality is that even though these big boys are both 100+ year old companies - when it comes to EV cars they have much lower experience than Tesla (or GM for that matter). They will not make any money on these cars for a long time (ask Tesla). Both VW and Ford promise EV cars in the millions in a few years....but i think they have come to the realization that it is much more difficult than they thought.

15 January 2019

Pretentious nonsense

1 November 2018

Maybe the new brand should be called FRAUD ?

Steam cars are due a revival.

1 November 2018
Thekrankis wrote:

Maybe the new brand should be called FRAUD ?

*rim shot*

Try the salmon!

15 January 2019
Thekrankis wrote:

Maybe the new brand should be called FRAUD ?

 

Your a card

1 November 2018

So far behind, you can’t even see them in the mirror.

What has happened to this once great automotive power? Leaders looking at this year’s profit not the future. I’d bet on Tesla surviving over Ford, and Tesla are dodge enough...

 

The best Ford can hope for is to be bought out by VW, though what would be in it for VW?

 

Robbo

Aussie Rob - a view from down under

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