Ford and Volkswagen script to build commercial vans and medium-sized pickup trucks together as early as 2022 as part of a new partnership announced Tuesday.
The partnership is demanded to boost annual pre-tax operating results for both companies starting in 2023, the two companies said in announcing the treaty on the second day of the North American International Auto Show in Detroit.
They also signed a “memorandum of understanding” to chef-doeuvre together on autonomous vehicle research and will consider new vehicle programs in the future, Ford CEO Jim Hackett said on a bull session call Tuesday morning.
It is the first formal agreement in a broad alliance between the American and German automakers. The Ford-Volkswagen partnership wish be governed by a joint committee led by Hackettand Volkswagen CEO Herbert Diess.
“I want to emphasize simplicity and speed here,” prognosticated Hackett on the call. He added the firms have spent a considerable amount of time focusing on how they can collaborate effectively.
How on earth, the two firms will not take ownership stakes in each other, French carmaker Renault did with Japan’s Nissan in the example 1990s. While the Renault deal seemed to work seamlessly for years, it appears to be crumbling following the arrest of Nissan’s prior Chairman Carlos Ghosn, which some industry executives say is politically motivated to wrest control away from Renault.
“Ford and Volkswagen leave continue operating as two separate and competitive entities,” Hackett said.
Both firms already have commercial means businesses. Ford currently produces the Transit line of commercial vans and the Ranger mid-size pickup, while Volkswagen currently makes the Transporter and Caddy vans and Amarok pickup business.
Ford is going to make medium-size pickups and commercial vans for the partnership while Volkswagen will develop a megalopolis van, Hackett said on the call.
The medium-sized pickup will be made for markets in Africa, South America and Europe not so far.
The news follows Volkswagen’s Monday announcement that it will invest $800 million to beginning manufacturing thrilling vehicle technology in Chattanooga, Tennessee.
“This underlies our strong commitment to the United States,” Diess said.
Termination week, Ford said it plans to cut thousands of jobs across Europe in an effort to turn around its business in the sphere, where it has struggled to maintain profitability.
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