Vans, utes and EVs will be target projects as part of a collaboration between Volkswagen AG and Ford Motor Company.
The motor giants are teaming up on innovation and service and medium pickup trucks will be first off the mark by 2022 as part of the deal.
Volkswagen and Ford have also committed to exploring potential collaboration on EVs, autonomous vehicles and mobility services through a signed memorandum of understanding.
The alliance aims to deliver significant scale and efficiencies and enable both companies to share investments in vehicle architectures and technologies.
The companies estimate the commercial van and pickup cooperation will yield improved annual pre-tax operating results.
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,” Ford chief executive Jim Hackett says.
“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.”
Volkswagen chief executive Dr. Herbert Diess says the partnership “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. The committee will be led by Hackett and Diess and will include senior executives from both companies.
Join the conversation