Alliance between Volkswagen and Ford

Alliance between Volkswagen and Ford

Through the alliance, both companies want, among other things, to offer their customers new technologies and a broader selection of models more quickly. Based on continued growth in global demand for commercial vehicles and high-performance electric vehicles, both partners expect major economies of scale for their respective portfolios.

The Volkswagen-Ford Alliance will:
• promote the realization of a medium-sized pickup truck designed and built by Ford, which will be included in Volkswagen Commercial Vehicles' own model range as the Amarok from 2022.
• further strengthen the commercial vehicle business of both companies in the coming year: with a city delivery van based on the latest Caddy model, which Volkswagen Commercial Vehicles will develop and manufacture. As another project, Ford will later develop a shared van in the one-ton loading segment.
• Support the e-mobility strategy of both companies by offering Ford its own electric vehicle for the European market from 2023 based on Volkswagen's modular electric drive box (MEB).

A total of around eight million vehicles are to be developed and produced in the alliance's three commercial vehicle projects.

“In view of the Covid-19 pandemic and its impact on the global economy, it is more crucial than ever to form resilient alliances between strong companies,” says Volkswagen boss Herbert Diess. “This collaboration will efficiently reduce development costs, enable greater global distribution of electric and commercial vehicles and significantly strengthen the position of both companies.”

Both Ford and Volkswagen have strong commercial van and pickup businesses around the world, including popular models such as Ford's Transit and Ranger and Volkswagen Commercial Vehicles' Transporter, Crafter, Caddy and Amarok.

Ford's use of Volkswagen's MEB platform in Europe is also an important cornerstone of Volkswagen's electric mobility strategy and supports both companies' efforts to achieve the goals of the 2015 Paris Climate Agreement. Volkswagen and Ford also want to examine further possibilities for cooperation on electric vehicles. Starting in 2023, Ford expects to deliver more than 600,000 electric vehicles based on the MEB platform within several years. The planned model is intended to combine generous space with the advantages of the electric drive. The vehicle is designed and constructed by Ford in Cologne-Merkenich. Ford is expanding its range of electric vehicles alongside the fully electric Mustang Mach-E, which will be presented in 2021.

The Volkswagen-Ford alliance does not involve cross-ownership between the companies, which will remain competitors.