Volkswagen, Ford deal could lead to EV, autonomous vehicle partnership: report

Volkswagen, Ford partnership could atomic number 82 to EV, democratic vehicle alliance: written report

The companies have agreed to engineer and build commercial vans and pickups

Automotive giants Volkswagen and Ford have announced a partnership that will lead to the evolution and sale of vans and medium-sized pickups, also as the potential development of electric and autonomous vehicle projects.

According to a January 15th, 2019 Reuters written report, executives from the two companies spoke with journalists and analysts in a conference telephone call, explaining that the partnership will non involve mergers or equity stakes.

The partnership volition reportedly be governed past a joint commission that includes the CEOs of both companies.

Detroit-based Ford — the earth's fifth-largest automotive manufacturer — volition engineer and build medium-sized pickups for both companies, every bit well every bit larger commercial vans for European customers.

Germany-based Volkswagen — the world's second-largest automotive manufacturer — will be responsible for the evolution and engineerings of a city van.

Ford CEO Jim Hackett said that more details about how the partnership will impact the company's regional operations will be released in the coming weeks.

Reuters also reported that Volkswagen CEO confirmed that the two companies have signed a "memorandum of agreement" to co-develop electric and autonomous vehicles.

Volkswagen previously used a Jan 14th, 2019 media release to announced that the visitor's Chattanooga, Tennessee facility has been called as the company's North American base for electric vehicle manufacturing.

The company plans on investing $800 million USD (roughly $1.06 billion CAD) to expand the facility which beginning opened in 2011.

Volkswagen currently uses the Chattanooga plant to build the company'southward Atlas SUV and the Passat sedan, with the goal to build an electrical vehicle based on a 'modular electrical toolkit chassis' (MEB) platform by 2020.

"Volkswagen is standing to invest in the U.s. to broaden its manufacturing and R&D footprint," said Herbert Diess, in the aforementioned January 14th media release.

"Projects like the electric car production announced today and changes in our sourcing decisions are in line with the current management of trade policy including the USMCA."

Source: Reuters, Volkswagen