VW & Ford Team Up For Possible Future Shared EV Efforts


They also signed a memorandum of understanding to discuss collaborating on autonomous tech and mobility services.

Volkswagen and Ford are getting serious about their partnership by officially announcing plans to collaborate on a midsized pickup truck in 2022 acting as a successor to the Ford Ranger and Volkswagen Amarok in some regions. In addition, the work would result in a Ford-developed one-ton van and a smaller city van from VW. The automakers have also signed a memorandum of understanding to investigate future alliances on shared EVs, autonomous vehicles, and mobility services. Both companies are quite clear that there are no plans for either business to take any ownership in the other as part of this alliance.

Ford is clear that its work developing the next-gen Ranger and Amarok is focused on the African, European, and South African markets. During a conference call announcing the partnership, representatives from the Blue Oval and VW both said that there was at least a possibility of the trucks coming to the U.S., although it required more discussion from both companies.

The Ford-developed one-ton van will carry the Transit Custom branding and won’t be available in the U.S. VW didn’t say what model name it planned to use on the commercial vehicle.

The companies had the least to say about the city van that VW is creating. The automaker confirmed that it planned to offer both gasoline-fueled and electric powertrains, though.

To keep these models from appearing like badge-engineered copies of each other, Ford’s Jim Farley said the vehicles would have distinctive driving dynamics, and they would be “discernably different products.”

Ford boss Jim Hackett and his VW counterpart Herbert Diess both seemed eager to collaborate on EVs in the future. There’s even a “constructive, open dialog” about VW giving the Blue Oval access to its MEB electric vehicle platform, especially for models in Europe and China. At least for the moment, the companies aren’t yet ready to discuss collaboration on mainstream passenger cars.

Source: Volkswagen

Categories: Ford, Volkswagen


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38 Comments on "VW & Ford Team Up For Possible Future Shared EV Efforts"

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Anyone notice that Tesla is the top news item this morning? Stock now down 7%. Guessing that his push to max 2018 sales for the Federal incentive has crushed early 2019 sales. His statements this morning have an edge of panic.

Tesla to Slash More Jobs in Effort to Reduce Model 3 Price
Elon Musk says cutting staff by 7% is part of an effort aimed at selling the Model 3 sedan for less.
“Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture” the base $35,000 Model 3 “and still be a viable company,” he said. “There isn’t any other way.”

He cautioned: “The road ahead is very difficult.”

Mr. Musk added that unaudited results for the final three months of last year indicate Tesla made a lower profit than in the third quarter.

What does this have to do with Ford and VW?

I know right. However, OP’s article has been copy-pasted – Maybe I saw it in other sources first before Insideevs. Anyway, maybe Elon Musk finally acknowledges that VW is a highly dangerous threat. According to Tesla’s 1-18-19 Form 8-K, “…we’re up against massive, entrenched competitors…understand that the road ahead is very difficult. This is not new for us – we have always faced significant challenges – but it is the reality we face. There are many companies that can offer a better work-life balance, because they are larger and more mature…”

The real problem right now is the billion dollar bond conversion that comes due March 1st. Can Musk work out an extension so that he can get the stock price to the conversion price? Let’s hope so. Stock now down 8% in PMT.

Another Euro point of view

The company will probably do fine but the stock will likely take a big hit as this sounds a bit like the end of the “story stock” aspect to it. I mean what Elon described in his memo is automotive business reality, low margins and very hard competition, nothing to push a stock price trough the roof. He just triggered the alarm clock and woke his fan base up. I am actually quite impressed by him for once.

In any case, they already committed to paying half in cash.

It’s not a real problem. Worst case they have to refinance the debt, which isn’t really all that different from converting it to equity AIUI…

More importantly, that’s been known for a long time. Bringing this up right now is completely irrelevant.

Tesla has, from the very beginning, expected established car makers to be an existential threat. The thing that constantly baffled them was the failure of established car makers to create competition…

If the only successful pure EV company is saying that it is concerned about viabiity, it does give credence to the hesitation that the major auto manufacturers have towards diving into EVs head first and leaving their ICE profit machine behind.

Yep the water’s cold but you have to jump in to get across the lake. Legacy auto is just tipping a toe in and saying that’s cold, while Musk is out in the middle of the lake and yells, and it doesn’t get much warmer out here.

Here’s hoping the InsideEVs staff removes these completely off-topic, same ol’ same ol’ Tesla bashing comments.

And seriously, are you guys still trying to short-sell Tesla stock?!? 🙄 Learning has not taken place…

Another Euro point of view

Good morning PuPu, glad to see you here 🙂

Tesla will drop at least 7% today. Both workers and stock value.

@eject said: “Tesla will drop at least 7% today. Both workers and stock value.”

Tesla stock goes down… then goes up… then goes down… then goes up… then…

Seems to be a pattern.

Another Euro point of view

It needs a good distraction now, Model Y reveal ?

It’s like having a shelf filled with troll dolls in CA, during a tremor they seem to animate and move, but it’s only a reaction to the earth shaking, they have no life of their own, they are simply inanimate pieces of rubber, nylon, and glass, that seem to come alive when Tesla falters.
After the tremor subsides they will quiet down, stop moving, and go back to just being small caricature figurines of something that is supposed to be scary, but isn’t, at least in this form.

Off Topic/

Great news announced by Telsa’s Elon Musk that Tesla is in process of making the necessary additional organizational adjustments to follow through with Tesla’s plan to bring to market a base $35k Model 3.

Also great news that Tesla anticipates a GAP Q4/18 profit.

It’s inspiring to see a public company roll up its sleeve and lean-in hard to get something important done; advancement to sustainable energy security.

Supercharging prices in Europe have been severely and quietly hiked. In Austria it has gone from 0.23€/kWh to 0.31€/kWh. Although that shouldn’t affect Model 3 orders since you can charge those anywhere.

@eject said: “Supercharging prices in Europe have been severely and quietly hiked. In Austria it has gone from 0.23€/kWh to 0.31€/kWh. Although that shouldn’t affect Model 3 orders since you can charge those anywhere.”

@eject- Do you know of an example in Austria where a competing fast charge network is offering a lower rate?

I’m glad to see Tesla raise it’s Supercharging rates more inline with rates that others charge… that will help finance continued rapid growth of the excellent convenient & reliable Tesla Supercharger network for those occasional long distance trips.

You can charge in NL/D/A/CH for 0.15€/kWh for the first 60 minutes after that you will additionally have to pay 0.10€ every minute. This is using the Maingau roaming which gives you access to virtually any charger.

@eject said: “You can charge in NL/D/A/CH for 0.15€/kWh…”


Looks like SMATRICS network Austria limits charge rate at 22kWh and charges by time 0.15€/min… or 0.45€/min for 50kWh. Am I reading that right on their site?

It looks like the “alien dreadnought” Tesla factory is forcing some cooperation like operational synergies to take place, in the newly minted EV land of Fordvergnügen!

Elon is battening down the hatches, with this second round of Tesla layoffs (7%), to take on the coming Fordvergnügen juggernaut.

Another Euro point of view

Does his tents have hatches ?

Actually, they’re falcon wing tent flaps.

@William said: “… Elon is battening down the hatches, with this second round of Tesla layoffs (7%), to take on the coming Fordvergnügen juggernaut.”

lol… You mean the still 2-3 years out (or longer) EV Fordvergnügen juggernaut?

If anything I’d think it’s super alarming to the Fordvergnügen juggernaut that Tesla seems committed to deliver a lower cost base Model 3… and has a Model Y in the works. That base Model 3 will be a massive popular choice for Western Europe fleet sales.

Elon standing on the roof of the GF Nevada shouting brace, brace, brace.
It won’t help. Tesla long term should focus on becoming someone the size of BMW and keep on selling high value cars. The idea that they can actually deliver at the price level of VW or Toyota is absurd.

They never claimed they can… Not in the near term, at least. Model 3 was always positioned as a BMW & Co. competitor.

@eject said: “…The idea that they [Tesla] can actually deliver at the price level of VW or Toyota is absurd.”

Tesla has a habit of of overcoming seemingly absurd challenges… seems to me that has got some folks spooked now that Tesla is aiming to follow through volume production of a base priced Model 3.

The business news items I’ve seen just now are all blaming the stock drop on the layoffs. As always, such judgments that many thousands of investors did A instead of B amount to painting with a VERY broad brush. In this case I don’t think it was the layoffs, per se, but the accompanying comments.

Musk’s assessment about what they need to do and the attendant difficulty sound correct to me. Starting with a clean sheet of paper and getting Tesla to where it is today is a business and engineering success of mind blowing proportions. But continuing to grow the company and move it beyond its luxury niche will be just as, or even more, difficult.

Funny thing is that almost all professional analysts say the job cuts were to be expected, and a good thing, signalling efficiency improvements…

(And US sales drop was undoubtedly fully expected and planned for.)

I’ve just been reading that the collaboration between VW/Ford mid-size pickup truck will not be sold in the USA & will be for export abroad only. https://www.forbes.com/sites/doronlevin/2019/01/16/achtung-future-midsize-volkswagen-pickup-built-with-fords-help-wont-be-sold-in-the-u-s/?ss=logistics-transport#6d042bb03b76

As their vehicles are now. The North American Pickup market is completely different to the ROTW market. The “new” Ranger just released by Ford in North America is a modified version of the Ranger than has been available elsewhere for several years. Same with Toyota and their Tacoma, which is not the Hilux available in the rest of the world.

Presumably the 2022 date is in part related to the date a new Ranger will be available anyway – expect a version that can handle a full hydrocarbon, PHEV or electric powertrain so there’s choice for people.

Ford are working on their own PHEV F150 system for release in 2020, which is unlikely to be available in the rest of the world.

I think we can say with some certainty that one of the hallmark events of late 2018/early 2019, aka the “knee in the curve” for EVs, will be this Ford/VW cooperation, even if we’re still learning what it will really mean. If nothing else, it will move Ford from the “when the heck are they going to do something?” category to the “they might be doing something very interesting” pile.

Another will be Tesla’s ongoing efforts to bring out a $35k Model 3. If they can pull that off in a meaningful way — something I would neither bet for or against at this point without the assistance of at least 4 glasses of wine — it will literally revolutionize the car industry.

The only reason I’m not assigning Hyundai/Kia the same level of importance is we still don’t know how many Konas, Souls, etc. they’ll produce and for which markets.

Buckle up, people, the second stage of this rocket is about to ignite…

Don’t see this cooperation making much of a difference. Ford already announced a while ago they are working on a whole bunch of BEVs. (They just confirmed this again.)

If a cooperation happened three years ago, it might have saved them some time bringing EVs to market — but one that is only vaguely stipulated right now, is not going to have any major impact at this point, beyond some potential cost savings years down the road…

Correct and Ford is getting ready in the coming months to show their BEV SUV/CUV with “300 AER”.

So without any details divulged by either, unsure of what type of EV tech or platform will be shared down the road and for what markets.

Most observers, including me, consider this a none event.

Indeed. They have been in talks about a potential EV cooperation for months. Now they are still in talks about a potential EV cooperation.

It’s basically confirmation of what is being worked on, and that the deal is moving forward, for the stock market.