Ford Motor and Volkswagen team-up to manufacture more efficient commercial vehicles with updated technology. Both automakers had signed an agreement that mentions none of the companies will take ownership stack and team up for a certain range of projects.
The two automakers decided to invest $1 billion over coming 5 years and with 51%, VW as the ascendant partner. The strategic treaty between both the companies will position them more competitive globally, said the two giants.
It was too early to announce about the products both enterprises going to be engage with, but two of them had vans and trucks in mind, a spokesperson of Ford mentioned in a statement.
James D. Farley, an executive vice president and president of Global Markets of Ford Motor stated, “Ford is committed to improving our fitness as a business and leveraging adaptive business models which include working with partners to improve our effectiveness and efficiency.” James added, “We look forward to exploring with the Volkswagen team in the days ahead how we might work together to better serve the evolving needs of commercial vehicle customers and much more.”
Dr. Sedran, head of Volkswagen Group, mentioned about the strong positions of both companies under different segments of commercial vehicles. Sedran called the partnership an opportunity that can improve the ability to face competition with other automobile manufacturers.
“Markets and customer demand are changing at an incredible speed. To adapt to the challenging environment, it is of utmost importance to gain flexibility through alliances. This is a core element of our Volkswagen Group Strategy 2025.” said Dr. Thomas Sedran.
The two carmakers are aiming to compete with automakers using different technologies and trying to be in the race by exploring a potential strategic alliance globally.