Ford-Volkswagen alliance to include shared production of 8 million commercial vehicles

Volkswagen CEO Dr. Herbert Diess and Ford President and CEO Jim Hackett on July 12, 2019 announce a strategic enlargement of the worldwide alliance between their organizations to include electrical and autonomous vehicles.


Ford Motor and Volkswagen plan to share production of 8 million commercial vehicles as half of an expanded alliance between the 2 automakers.

Production of the vehicles is predicted to start as early as subsequent 12 months and proceed by the life cycles of the merchandise. The automakers didn’t disclose precise time frames for production of the vehicles, which have been introduced Wednesday as half of finalizing agreements between the 2 sides.

Products will include a metropolis van created and constructed by Volkswagen; a 1-ton cargo van engineered by Ford; and a Volkswagen medium-sized pickup that can use the platform of the Ford Ranger.

“In light of the Covid 19 pandemic and its impacts on the global economy, more than ever it is vital to set up resilient alliances between strong companies,” Volkswagen CEO Herbert Diess mentioned in a launch. “This collaboration will efficiently drive down development costs, allowing broader global distribution of electric and commercial vehicles, and enhance the positions of both companies.”

Commercial vehicles include these offered to firms, fleet operations and authorities. 

The Ford-Volkswagen alliance is centered on enterprise operations exterior of North America. It doesn’t include cross-ownership between the businesses.

The deal, which is predicted to drive billions in price efficiencies between the 2 firms, was initially introduced in January 2019. It was then expanded roughly a 12 months in the past to include elements comparable to electrical and autonomous vehicles, amongst different merchandise.

Ford, as half of an $11 billion restructuring plan, is specializing in its commercial automobile enterprise to help in driving earnings to fund rising applied sciences comparable to autonomous and electrical vehicles.

The alliance additionally contains Ford utilizing Volkswagen’s MEB structure, which serves as a base for its ID.three electrical automotive, for about 600,000 electrical vehicles for Europe over a number of years beginning in 2023.

Volkswagen final week closed on a $2.6 billion funding in Argo AI, a Pittsburgh-based autonomous automobile start-up that Ford acquired a majority stake of in 2017, as half of the alliance.

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