DETROIT, Michigan -Volkswagen and Ford have announced formal agreements towards a broad alliance to boost competitiveness and better serve customers ”in an era of rapid change in the industry”.
VW CEO Dr Herbert Diess and Ford CEO Jim Hackett confirmed at the 2019 Detroit auto show that the companies would develop commercial vans and medium-sized bakkies for global markets from 2022.
The alliance, the said, would drive significant scale and efficiencies and enable each to share investments in vehicle architectures to deliver distinct capabilities and technologies.’
COLLABORATION ON AGENDA
The companies estimate the commercial van and bakkie co-operation will yield improved annual pre-tax operating results from 2023.
The companies have also signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services, and electric vehicles.
Hackett told The Corner in a media release: “Over time, the alliance will help each comp;any to create value and meet customers and society’s needs.
“It will drive significant efficiencies and let us collaborate on shaping the next era of mobility.”
Diess added: “VW and Ford will harness collective resources, innovation and complementary market positions to serve millions of customers around the world while becoming a cornerstone for our drive to improve competitiveness.”
The alliance, which does not entail cross-ownership between the two companies, will be governed by a joint committee. This committee will be led by Hackett and Diess and will include senior executives from both companies.