VOLKSWAGEN AG AND FORD MOTOR COMPANY LAUNCH
GLOBAL ALLIANCE
JAN 15, 2019 | DETROIT
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Alliance leverages the two global automakers’
strengths to better compete, innovate and serve customers
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Alliance does not involve cross-ownership between
the two companies
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Companies to first deliver medium pickup trucks for
global customers, aiming to start in 2022, and intend to follow with
commercial vans in Europe
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Van and pickup agreements are targeted to deliver
scale and efficiencies for each company starting in 2023
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Volkswagen and Ford also are committed to exploring
potential collaboration on EVs, autonomous vehicles and mobility services
DETROIT, Jan. 15, 2019 – Volkswagen AG and Ford
Motor Company today 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 commercial vans and 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 commercial van and pickup cooperation will
yield improved annual pre-tax operating results, starting in 2023.
In addition, Volkswagen and Ford have signed a memorandum of understanding
to investigate collaboration on autonomous vehicles, mobility services and
electric vehicles and have started to explore opportunities. Both
companies also said they were open to considering additional vehicle
programs in the future. The teams will continue working through details in
the coming months.
“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.
Commercial van and pickup collaboration
Ford and Volkswagen both have strong commercial van and pickup businesses
around the globe, with popular nameplates such as the Ford Transit family
and Ranger as well as the Volkswagen Transporter, Caddy and Amarok.
The companies’ collective light commercial vehicle volumes from 2018
totaled approximately 1.2 million units globally, which could represent
the industry’s highest-volume collaboration as production scales.
Demand for both medium pickups and commercial vans is expected to grow
globally in the next five years. The alliance will enable the companies to
share development costs, leverage their respective manufacturing capacity,
boost the capability and competitiveness of their vehicles and deliver
cost efficiencies, while maintaining distinct brand characteristics.
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.
For both parties, Ford intends to engineer and build larger commercial
vans for European customers, and Volkswagen intends to develop and build a
city van.
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