These two giants in automotive could work together to develop a range commercial vehicles.
Car manufacturers often join forces to reduce production costs and accelerate development. They also work together on projects that benefit both of them. This has been going on since the beginning of the automobile industry. The latest to sign a deal are Volkswagen, and Ford.
They have signed a Memorandum of Understanding this week and are currently looking at the possibilities of forming a strategic alliance to co-develop a range of commercial vehicles. Ford and VW are exploring other ways they could better serve customers’ evolving needs. This means that they will be closely monitoring market trends and may work together to meet demand for a particular model.
Both companies made it clear that the strategic partnership would not result in equity arrangements. VW will therefore not be purchasing a stake at Ford, or vice versa.
Jim Farley (Ford’s global market president) spoke out about the partnership.
“This possible alliance with Volkswagen Group is yet another example of how we can be more fit as businesses, while also creating a winning global product range and expanding our capabilities. We look forward exploring how we can work together with the Volkswagen team to better serve commercial vehicle customers.
Thomas Sedran is the VW Group’s strategy chief.
It is vital to have flexibility through alliances in order to adapt to changing environments. This is the core element of Volkswagen Group Strategy 2025. Ford and Volkswagen have the potential to work together in an industrial collaboration that could lead to global competitiveness.
This is all that the companies will share at the moment. More details will be revealed as discussions progress.