Published: Thu, January 17, 2019
Money | By Ethel Goodwin

VW And Ford Make It Official, Launch Global Partnership

VW And Ford Make It Official, Launch Global Partnership

In addition, for both parties, Ford intends to engineer and build "larger commercial vans for European customers", while Volkswagen intends to "develop and build a city van" (we suspect this will serve as the next-generation Volkswagen Caddy and Ford Transit Connect).

"I want to emphasize simplicity and speed here", said Hackett on the call.

The medium pickup and commercial van alliance will be overseen by a joint committee including Hackett and Volkswagen CEO Dr. Herbert Diess, as well as other senior executives.

"Automakers aren't just competing with each other anymore, they're under intense pressure from well-funded tech companies who are eager to get in on the future of mobility", she said.

VW and Ford is expected to join forces on commercial vehicles and is likely to expand into joint development of electric and self-driving technology.

According to Hackett, the alliance does not involve cross ownership and Ford and Volkswagen will continue to market and manufacture discernibly different products. Located in northwestern Kocaeli province, Gölcük and Yeniköy plants in of Ford Otosan, the US carmaker's Turkish venture, are the main production hubs of the Ford Transit and Ford Tourneo light commercial vehicles in Europe. The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company and is pursuing leadership positions in electrification, autonomous vehicles and mobility solutions. It is in these very two markets that Volkswagen commands sales and hence the partnership will benefit both companies. Both companies are dealing with structural issues.

Combining its financial muscle with Ford in developing the technology could help to increase profits. "Projects like the electric auto production announced today and changes in our sourcing decisions are in line with the current direction of trade policy including the USMCA".

They'll be sold under both the VW and Ford brands. "It's mitigation against potential cost increases because of the new drivetrains we need for the electrification in this segment and also the Carbon dioxide penalties we are facing", he said. The alliance will enable the companies to share development costs, leverage their respective manufacturing capacity, boost the capability and competitiveness of their vehicles and deliver cost efficiencies, while maintaining distinct brand characteristics.

The medium-sized pickup will be made for markets in Africa, South America and Europe only so far.

The partnership was given a soft launch at the Detroit Motor Show in the United States, just 24 hours after VW delighted Donald Trump with the announcement of 1,000 new electric vehicle jobs at its plant in Tennessee.

Mr Deiss told reporters: "How, where and when this might happen, this is what we are now negotiating with our colleagues at Ford".

President Donald Trump praised the announcement on Twitter, writing, "Volkswagen will be spending 800 million dollars in Chattanooga, Tennessee". Both companies, Hackett said, have "deep ties" to their home countries, and don't want that to change.

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