Volkswagen and Ford on Tuesday joined hands formally to bring affordable and technologically advanced vehicles to meet the demands of growing customers worldwide. Volkswagen CEO Dr. Herbert Diess and Ford CEO Jim Hackett met to announce their plans to create commercial vans and medium-sized pickups, which will start rolling out in 2022.
Both Volkswagen and Ford will create different vehicle architectures and have signed an MOU to work together on self-driving cars, mobility services, and electric vehicles as well. Both automakers are also willing to explore other opportunities.
“Over time, this alliance will help both companies create value and meet the needs of our customers and society,” Hackett stated. “It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility.”
Diess remarked: “Volkswagen and Ford will harness 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 automakers have created a joint committee, which will oversee all the operations. Managed by Hackett and Diess, there will be senior administrators from both the firms working to make it a successful deal.
Ford and Volkswagen are two biggest automakers in the commercial van and pickup segments. Ford is famous for its Transit and Ranger lineup while Volkswagen has Transporter, Caddy, and Amarok to meet the demands of varied customers. Both firms jointly sold 1.2 million vehicles last year. As demand for these vehicles is predicted to elevate in the next five years, this alliance will be profitable for both.
The automakers will split building expenses, leverage their individual development capability, increase the competence and effectiveness of their vehicles and become more cost-effective.
Volkswagen and Ford alliance will bring us medium-sized pickups from Ford for both firms. These may reach the market by 2022. Ford will develop bigger commercial vans for European markets while Volkswagen will create a city van.