The strategic alliance will combine the advantages of the two major global auto manufacturers, enhance the market competitiveness of both parties and promote positive innovation, so as to better serve consumers
Strategic alliances will not involve cross-shareholdings between the two companies
The two companies plan to launch a new mid-size pickup truck developed for the global market as early as 2022, and have plans to jointly launch commercial models in the European market subsequently
According to the agreement, the cooperation between the two parties in commercial vehicle models and pickup truck models is expected to significantly expand the business scale of both parties and improve operational efficiency from 2023
Ford and Volkswagen also promised to explore potential cooperation opportunities in electric vehicles, autonomous driving, and smart mobility services
(Detroit, United States, January 15, 2019) Ford Motor Company and Volkswagen Group formally announced today that the two parties will form a strategic alliance with a wide range of businesses and sign the first cooperation agreement. In the context of rapid changes in the automotive industry, this strategic alliance will be able to effectively enhance the market competitiveness of both parties and thus better serve consumers.
Ford Motor Company CEO Jim Hackett and Volkswagen Group CEO Dr. Herbert Diess jointly announced that the two companies will launch commercial vehicle models and mid-size pickup trucks jointly developed for the global market as early as 2022 type. The new strategic alliance will help both parties to share costs in terms of vehicle architecture with unique functions and technologies, thereby significantly improving business scale and operating efficiency.
The cooperation between the two parties in commercial vehicle models and pickup truck models is expected to bring an increase in pre-tax profits from 2023.
In addition, Ford and Volkswagen also signed a memorandum of cooperation aimed at exploring cooperation in the areas of autonomous driving, intelligent mobility services and electric vehicles. At present, the two parties have started to explore potential cooperation opportunities. The two sides expressed their openness to future cooperation on more vehicle models. The teams of both parties will continue to discuss the details of the cooperation in the coming months.
Mr. Han Kaite said: "Over time, this alliance will help both companies create higher value and better meet the actual needs of our consumers and society. This alliance will not only help to significantly increase Efficiency, strengthen business operations, and also provide us with the opportunity to work together to change the era of intelligent mobile travel in the future. "
Dr. Diss said, "Volkswagen and Ford will use the shared resources, innovation capabilities and complementary market positioning of both parties to better serve millions of consumers worldwide. At the same time, improving competitiveness is our A common goal, and the new strategic alliance lays the foundation for achieving this goal. "
The newly formed alliance will not involve mutual shareholding by both partners. The two partners will set up a joint committee to complete the management of the alliance. The management committee is co-led by Dr. Hankat and Dr. Dis, and consists of senior management from both companies.
Commercial vehicle models and pickup truck models
Globally, Ford and Volkswagen have strong business coverage in the commercial vehicle and pickup truck types, and both have best-selling product lineups, such as the Ford Transit series, Ford Ranger, and Volkswagen Transporter, Volkswagen Caddy and Volkswagen Amarok .
In 2018, the global total sales of light commercial vehicles reached nearly 1.2 million units. In terms of product scale, this will be the largest light commercial vehicle cooperation in the industry.
In the next 5 years, the global market demand for medium-sized pickups and commercial vehicles will continue to grow. This alliance will enable the two companies to support the two parties in sharing product development costs while retaining the characteristics of their respective brands, using their respective production capacities, improving product capabilities and competitiveness, and reducing costs.
Under the strategic alliance, Ford will be responsible for the development and production of medium-sized pickup trucks for both parties, and plans to officially launch in the market in 2022. Ford will develop and produce large-size commercial models for the European market for both parties, while Volkswagen will develop and produce MPV models.