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VW and Ford alliance to explore EVs, autonomous vehicles and mobility services

Ford and Volkswagen have announced details of their new global alliance, which will leverage “the two global automakers’ strengths to better compete, innovate and serve customers”.


Volkswagen and Ford said they are committed to exploring potential collaboration on EVs, autonomous vehicles and mobility services

First announced last summer, the alliance will not involve cross-ownership between the two companies but will launch first with van and pickup agreements before exploring potential collaboration on EVs, autonomous vehicles and mobility services, as outlined by Volkswagen CEO Dr Herbert Diess and Ford CEO Jim Hackett today.

Under the commercial vehicle partnership, the agreements are targeted to deliver scale and efficiencies for each company starting in 2023.

The deal will first deliver medium pickup trucks for global customers, aiming to start in 2022, with Ford to engineer and build them. The firms will look to follow this with commercial vans in Europe. This would see Ford engineer and build larger commercial vans for European customers, while Volkswagen intends to develop and build a city van.

The manufacturers said 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.

The firms added that they were open to considering additional vehicle programmes in the future.

VW and Ford also said they have already started to explore opportunities on collaboration on autonomous vehicles, mobility services and electric vehicles.

“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 will be governed by a joint committee, led by Hackett and Diess and including senior executives from both companies.

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.