Volkswagen and Ford are negotiating about collaboration on EVs

We knew that it was coming. Volkswagen AG and Ford Motor Company announced the launch of a global alliance, which is envisioned to leverage the two global automakers’ strengths and increase competitiveness.

The agreement reminds us of some kind of deep partnership rather than a merge, as there is no cross-ownership between Ford and VW: "The alliance, will be governed by a joint committee. This committee will be led by Hackett and Diess and will include senior executives from both companies."

At least for now, the major focus of the alliance to be pickups and commercial vans.

"Demand for both medium pickups and commercial vans is expected to grow globally in the next five years. The alliance will enable the companies to share development costs, leverage their respective manufacturing capacity, boost the capability and competitiveness of their vehicles and deliver cost efficiencies, while maintaining distinct brand characteristics."

According to the press release:

  • Ford will engineer and build medium-sized pickups for both companies which are expected to go to market as early as 2022
  • For both parties, Ford intends to engineer and build larger commercial vans for European customers,
  • Volkswagen intends to develop and build a city van

Exploring potential collaboration on EVs

This is the part that we are interested most. Ford and Volkswagen are exploring the potential of collaboration on EVs, autonomous vehicles and mobility services.

It's expected that Volkswagen could grant Ford access to MEB platform for all-electric cars, which could be handy for Ford, who didn't invest in its own platform.

"In addition, Volkswagen and Ford have signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles and have started to explore opportunities. Both companies also said they were open to considering additional vehicle programs in the future. The teams will continue working through details in the coming months."

Volkswagen: Rolling Chassis with the Modular Electric Drive Kit (MEB) - First pure EV platform for high volume

Volkswagen: Rolling Chassis with the Modular Electric Drive Kit (MEB) - First pure EV platform for high volume

Press release:

Volkswagen AG and Ford Motor Company Launch Global Alliance

  • Alliance leverages the two global automakers’ strengths to better compete, innovate and serve customers
  • Alliance does not involve cross-ownership between the two companies
  • Companies to first deliver medium pickup trucks for global customers, aiming to start in 2022, and intend to follow with commercial vans in Europe
  • Van and pickup agreements are targeted to deliver scale and efficiencies for each company starting in 2023
  • Volkswagen and Ford also are committed to exploring potential collaboration on EVs, autonomous vehicles and mobility services

Volkswagen AG and Ford Motor Company today announced the first formal agreements in a broad alliance that positions the companies to boost competitiveness and better serve customers in an era of rapid change in the industry.