Volkswagen And Ford Joining Forces To Create Commercial Vehicles

Volkswagen And Ford Joining Forces To Create Commercial Vehicles

According to Just Auto’s, Graeme Roberts, Volkswagen and Ford formally announced an alliance on commercial vehicles. The alliance will see both companies collaborating to develop medium-sized pickup trucks for international sale. However, they’re also teaming up for electric and self driving vehicles as well.

Both the CEO of Ford, Jim Hackett, and CEO of VW, Herbert Diess, confirmed the companies would be developing commercial vans, electric vehicles, self driving vehicles, and medium-sized pickups for the international market in as early as 2022.

By 2023, both companies said in a statement that the alliance “will yield improved annual pre-tax operating results.” However, they continued on to say that “The alliance will drive significant scale and efficiencies and enable both companies to share investments in vehicle architectures that deliver distinct capabilities and technologies.”

According to Roberts, both CEOs have signed a memorandum of understanding to “investigate collaboration on autonomous vehicles, mobility services, and electric vehicles and have started to explore opportunities.” However, both of them stated they are open to the possibility of creating additional vehicle programs together.

In several other statements both companies discussed the alliance’s impact on value, meeting customer needs, increasing efficiency, and driving the next era of automotive travel.

In a statement by Diess, “Volkswagen and Ford will hardness our collective resources, innovation capabilities, and complementary market positions to even better serve millions of customers around the world. At the same time, the alliance will be a cornerstone for our drive to improve competitiveness.”

The alliance itself will be governed by a joint committee headed by both CEOs; however, it will also include several senior executives from both VW and Ford.

Volkswagen And Ford Joining Forces To Create Commercial Vehicles

As of right now, both companies have well-known commercial vehicles that are widely used around the world. Ford has a variety of Ford Transits that range from passenger to cargo vans. However, Volkswagen also has the Transporter, Caddy, and Amarok vehicles.

According to Roberts, experts expect pickup and commercial vehicle sales to grow exponentially over the new five years. Development costs, manufacturing capacity, vehicle capabilities, cost effectiveness, and competitiveness will all improve with the alliance for both companies. However, they will also maintain the characteristics that makes the brands distinct.

By 2022, Ford will create medium-sized pickup trucks for both Ford and Volkswagen. Beyond that, Ford will also build larger commercial vehicles for European customers while Volkswagen creates vans designed for the city.

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