Volkswagen AG and Ford Motor Company recently announced the first formal agreements in a broad alliance that positions the companies to boost competitiveness and better serve customers in an era of rapid change in the industry.
Volkswagen CEO Dr. Herbert Diess and Ford CEO Jim Hackett confirmed that the companies intend to develop medium-sized pickups for global markets beginning as early as 2022.
The alliance will drive significant scale and efficiencies and enable both companies to share investments in vehicle architectures that deliver distinct capabilities and technologies.
The companies estimate the pickup cooperation will yield improved annual pre-tax operating results, starting in 2023.
Volkswagen and Ford also are committed to exploring potential collaboration on EVs, autonomous vehicles and mobility services, and have signed a memorandum of understanding to investigate this.
“Over time, this alliance will help both companies create value and meet the needs of our customers and society,” Hackett said. “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 added: “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 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.
Through the alliance, Ford will engineer and build medium-sized pickups for both companies which are expected to go to market as early as 2022.