Ford and Volkswagen Announce Global Alliance to Expand Vehicle Production
Ford Motor Company and Volkswagen Group have announced the signing of several agreements aimed at expanding their global alliance. This partnership seeks to meet the evolving needs of both companies' customers in Europe and other regions worldwide by leveraging their shared strengths in producing small and medium-sized trucks, commercial vehicles, and electric vehicles.
Goals of the Alliance
The two companies expect this alliance to enhance the vehicle ownership experiences for both existing and future customers. They plan to achieve this by designing and launching attractive offerings at an accelerated pace, integrating relevant modern technologies, and producing exceptional vehicles with a wider variety of options and models. Both companies also anticipate continuous growth in global demand for commercial vehicles, with high-performance electric vehicles contributing to a high-value production range in their product lines.
The Alliance Will Focus On:
- Producing medium-sized pickup trucks designed and manufactured by Ford, which Volkswagen will sell under the name "Amarok" starting in 2022, as part of Volkswagen's commercial vehicle lineup.
- Enhancing the production of commercial vehicles for both companies starting in 2021, including the manufacture of a city delivery truck based on the latest "Caddy" models developed and produced by Volkswagen Commercial Vehicles, followed by a one-ton cargo truck manufactured by Ford.
- Working on the production of a high-spec Ford electric vehicle designated for Europe by 2023, utilizing Volkswagen's modular electric drive toolkit, which will expand Ford's capabilities to reduce carbon emissions in the region.
Production Expectations
The two companies expect to produce up to 8 million vehicles from the medium-sized pickup trucks and the two commercial vehicles listed in the trade agreement throughout the products' life cycles.
Statements from Officials
Herbert Diess, CEO of the Volkswagen Group, commented: "In light of the COVID-19 pandemic and its economic repercussions, establishing flexible alliances between strong companies has become more urgent and important than ever. This collaboration is crucial for reducing development costs, expanding the global distribution of electric and commercial vehicles, and solidifying both companies' positions in the sector."
Jim Hackett, President and CEO of Ford, stated: "This alliance comes at a time when we are witnessing unprecedented demand for vehicles that combine connectivity and intelligence in a smarter world. This, in turn, presents us with significant opportunities for innovation and finding solutions to many challenges facing the global transportation sector while providing exceptional benefits to customers, even as companies seek to streamline their spending."
Ford's Future Plans
Starting in 2023 and for several years thereafter, Ford will be able to produce 600,000 electric vehicles using the MEB platform, designed to combine spaciousness with powerful electric performance. This vehicle, which Ford will design and manufacture at its Merkenich facility in Cologne, will add a new model alongside the all-electric Mustang Mach-E, set to launch in 2021.
