Volkswagen, Ford Team Up on Pickups, Electric Vehicles
YOU HAVE BEEN SELECTED
WSJ wants to hear from you. Take part in this short survey and share your feedback with the Journal. Take Survey
Volkswagen, Ford Team Up on Pickups, Electric Vehicles
Auto makers to investigate collaboration on autonomous vehicles, mobility services and electric vehicles
Under a new alliance with Volkswagen, Ford will engineer and produce pickup trucks for both companies, giving Volkswagen greater access to a lucrative market segment. PHOTO: CARLOS OSORIO/ASSOCIATED PRESS
Volkswagen AG VOW3 0.65% and Ford Motor Co. F -1.22% will jointly produce midsize pickup trucks and vans, and will collaborate on electric vehicles as part of a broad global alliance, the companies said Tuesday.
Under the alliance, Ford will engineer and produce the pickup trucks for both companies, giving Volkswagen greater access to a lucrative market segment where it has so far struggled to establish a foothold.
Ford will also build larger vans for European customers, while Volkswagen will develop a city van for both companies.
The vehicles should be ready for market by 2022, while the cooperation should yield improved pretax operating results from 2023, the companies said.
Volkswagen and Ford also signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles. Both companies said they were open to considering additional vehicle programs in the future.
By joining forces, the companies aim to spread the cost and risk of the extensive investment needed to develop the next generation of autonomous and electric vehicles.
The alliance will be governed by a committee led by Volkswagen Chief Executive Herbert Diess and Ford CEO Jim Hackett.
