The American vehicle manufacturer Ford and Germany’s largest car maker VW, have recently announced a business partnership together, outlining plans to produce commercial vans and medium sized pickup trucks.
The plan is to allow the two companies to cut costs from their commercial vehicle business and boost pre-tax profit margins in this profitable area of the market, a first for these two companies to partner together.
There will be more than just the commercial vehicle partnership, Ford and VW also agreed on a memorandum of understanding to do research and development on autonomous vehicles, connected mobility services and electric vehicles.
The Ford-VW alliance will be overseen by a board of joint executives led by Ford CEO Jim Hackett and VW CEO Herbert Diess.
News articles are reporting that this alliance, according to Hackett and Diess, will help both companies create value and meet the needs of their customers and society in general.
Hackett has said in a statement that it will not only drive significant efficiencies and help both companies improve their fitness, but it also gives the opportunity to collaborate on shaping the next era of mobility.
Volkswagen and Ford plan to harness their collective resources, innovation capabilities and complementary market positions to better serve their millions of customers around the world. At the same time, the partnership will be a cornerstone for a drive to improve competitiveness.
Ford plan to engineer a new medium-sized pickup and larger commercial vans under this corporate alliance, while VW will set to work on a smaller city van. The two automakers will also leverage each other’s various manufacturing bases around the world to help reduce manufacturing costs.
Some other vehicles could come as a result of the partnership as well, with the companies saying it will enable both companies to share investments in vehicle architectures that deliver distinct capabilities and technologies.
The first vehicle to be born out of this new business partnership will arrive sometime in 2022 and have not said yet what it will be, maybe it will be a Rangrok?