An agreement could be made as soon as July of this year.
Automotive News reported in March that Ford, Volkswagen were negotiating a deal on technology for electric and autonomous cars. According to the same source, Herbert Diess, the boss of the German company, says that the deal is imminent as negotiations are progressing well.
Dies spoke in Wolfsburg at a meeting of 500 top executives from VW. He explained that the extended agreement would not only focus on trucks and commercial vehicles, but also allow both companies to optimize their investments in new technology and slow down sales.
Diess stated that without a strong presence in America – which is still our weakest region, global trade disputes could put us in a difficult position. Today, we are heavily influenced by China. We need to counterweight the U.S.
Learn More about the Ford-VW Tie Up:
Automotive News says that an agreement could be reached as soon as July, citing “people who are familiar with the talks.” As reported in March, it is likely to include an investment by Volkswagen in Ford’s autonomous affiliate Argo AI. Preliminary expectations suggest that if the agreement is made, it will be a challenge to Google’s Waymo or General Motors’ Cruise for ambitions and scope.
Diess stated that Volkswagen is open to a tie up with Ford because Ford wants to increase its value. He believes that a high valuation is both “an important acquisition currency during the next phase of consolidation in industry” and “a virtual money for partnerships that will be necessary for the transformation.”
Stay tuned for further details on the Ford-VW extended deal in the coming weeks.