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Ford Motor Company and Volkswagen AG have announced a partnership in the field of commercial vehicles, setting goals such as electric and autonomous driving technology as key priorities. The new alliance will save billions of dollars as per reports.
The information about the new Ford-Volkswagen partnership came out along with the news from the ongoing Detroit Auto Show 2019. But what is more interesting is that it was only recently when Ford announced a partnership with Mahindra in India.
However, the alliance with Volkswagen AG is on a much more global level. The commercial vehicle market in Europe, the United States and China are the focus areas. Herbert Diess, CEO of Volkswagen AG, shared that both companies have discussed possibilities in the market for vans and other commercial vehicles, in the past few months. He further added that no merger or equity stakes will be involved in the expansion of the alliance.
The alliance highlights the challenges faced by global automotive brands in managing the development costs of electric and self-driving automobiles. Furthermore, the technological advancement required in future products to meet stringent emission norms is a huge task to accomplish.
The success and scope of the new Ford-Volkswagen alliance will depend on further talks between each group. Sources suggest that the basic framework includes the resource-pooling for autonomous technology, Volkswagen investing in Ford's business and Ford licensing Volkswagen's MED platform for electric vehicles.
Volkswagen will also gain access to the platform of Ford's popular mid-size pickup truck, the Ranger. This means that we can expect a capable Volkswagen pickup truck in the not-too-distant future; something which the brand does not have right now.
A development to the alliance would bring better savings for both. For the same reason, Volkswagen would consider building their products at Ford's facilities. Similarly, Ford's electric mobility goals could be attained through Volkswagen's dedicated architectures.
Thoughts On The New Partnership Between Volkswagen And Ford
The automotive industry is witnessing a growing competition between manufacturers performing in various segments; be it passenger vehicle, commercial or public service. Over the past few years, many major brands have tied up for mutual benefit; the new partnership between Volkswagen and Ford being the latest example.