Home World News Ford-Volkswagen alliance to incorporate shared manufacturing of eight million industrial autos

Ford-Volkswagen alliance to incorporate shared manufacturing of eight million industrial autos

Ford-Volkswagen alliance to include shared production of 8 million commercial vehicles

Volkswagen CEO Dr. Herbert Diess and Ford President and CEO Jim Hackett on July 12, 2019 announce a strategic enlargement of the worldwide alliance between their organizations to incorporate electrical and autonomous autos.


Ford Motor and Volkswagen plan to share manufacturing of eight million industrial autos as a part of an expanded alliance between the 2 automakers.

Manufacturing of the autos is anticipated to start as early as subsequent yr and proceed via the life cycles of the merchandise. Manufacturing is anticipated to happen over a number of years, Ford CEO and President Jim Hackett mentioned Wednesday throughout a digital Deutsche Financial institution convention.

The manufacturing quantity was introduced Wednesday as a part of finalizing agreements between the 2 sides.

Merchandise will embody a metropolis van created and constructed by Volkswagen; a 1-ton cargo van engineered by Ford; and a Volkswagen medium-sized pickup that may use the platform of the Ford Ranger.

“In gentle of the Covid 19 pandemic and its impacts on the worldwide financial system, greater than ever it is important to arrange resilient alliances between robust firms,” Volkswagen CEO Herbert Diess mentioned in a launch. “This collaboration will effectively drive down growth prices, permitting broader world distribution of electrical and industrial autos, and improve the positions of each firms.”

Industrial autos embody these offered to firms, fleet operations and authorities. 

The Ford-Volkswagen alliance is centered on enterprise operations exterior of North America. It doesn’t embody cross-ownership between the businesses.

The deal, which is anticipated to drive billions in price efficiencies between the 2 firms, was initially introduced in January 2019. It was then expanded roughly a yr in the past to incorporate different facets resembling electrical autos, amongst different merchandise.

Ford, as a part of an $11 billion restructuring plan, is specializing in its industrial automobile enterprise to help in driving earnings to fund rising applied sciences resembling autonomous and electrical autos.

The alliance additionally contains Ford utilizing Volkswagen’s MEB structure, which serves as a base for its ID.three electrical automobile, for about 600,000 electrical autos for Europe over a number of years beginning in 2023.

Volkswagen final week closed on a $2.6 billion funding in Argo AI, a Pittsburgh-based autonomous automobile start-up that Ford acquired a majority stake of in 2017.