On July 12, 2019, Ford Motor Company and Volkswagen AG announced a collaboration agreement that aims to create a global alliance, which would see both automakers develop and manufacture commercial vehicles together.
The two automakers hope this collaboration will help reduce development costs and accelerate the production of electric and autonomous vehicles. The alliance does not involve cross-ownership between the two companies, and both will remain independently traded stocks.
The agreement is expected to cover several areas of collaboration, including the production of medium-sized pickup trucks for global markets, and the development of autonomous vehicle technology.
The first collaboration between the companies will involve the development of medium-sized pickup trucks and commercial vans. The automakers have announced that the pickups will be built by Ford and will use Volkswagen`s existing technology.
In addition to the agreement regarding commercial vehicles, Ford and Volkswagen have also agreed to explore the possibility of working together on autonomous vehicles. The companies hope to develop a standard autonomous vehicle architecture that can be used by both automakers to create differentiated driver assistance systems and self-driving technology.
The alliance between Ford and Volkswagen is a significant move for both companies, as they face increasing competition from new market entrants, such as Tesla and Uber. The global automotive industry is currently undergoing a period of rapid transformation, as electric and autonomous vehicles become increasingly important.
The collaboration between Ford and Volkswagen is also expected to help reduce development costs, which could help both companies remain competitive in a challenging market. By working together, the companies can share research and development costs, which can help reduce the time it takes to bring new products to market.
Overall, the agreement between Ford and Volkswagen represents an important step forward for both companies. It shows that they are committed to remaining competitive in a changing market, and that they are willing to work together to achieve their goals.