Volkswagen & Ford join forces for commercial vehicle operation

Ford Motor Co and Volkswagon AG recently announced that they were joining forces to develop its international alliance by leveraging their strengths in midsize pickup trucks and commercial and electrical vehicles. This is part of their promise to meet the rapidly evolving requirements of their customers both in Europe and in other regions across the world.    

The partnership had been on the cards since last July when they announced their agreement, but we now know more about what that relationship entails.

The alliance between the two vehicle manufacturing powerhouses expects to improve consumer ownership experiences with faster innovative vehicle choices, the introduction of relevant new technology, improved efficiency and more model choices. They expect consistent growth in the global demand from the industry for commercial vehicles and high-performance electric vehicles, thus adding value to their product offerings.

Some of the things that the alliance will offer includes:

• Developing a medium-sized pickup truck manufactured and designed by Ford and marketed and sold by Volkswagon as the Amarok in 2022 within the lineup of Volkswagon Commercial Vehicles. 
• Continuing to strengthen the commercial vehicle side of both companies as quickly as 20201 by manufacturing a city delivery van based on the most recent Caddy model. This will be developed and built by Volkswagen Commercial Vehicles and, at a later date, a one-tonne cargo van put into motion by Ford.
• Aiming to develop a brand new electric vehicle by Ford in 2023 for the European market, based around Volkswagen’s Modular Electric Drive and capitalising on Ford’s zero-emission capabilities in the area.

It is expected that during the lifecycles of the products, the two super brands expect to manufacture up to a combined total of eight million medium pickup trucks and commercial vans.

Volkswagen Group Chief Executive Dr Herbert Diess says that “In light of the COVID 19 pandemic and its impacts on the global economy, more than ever it is vital to set up resilient alliances between strong companies. This collaboration will efficiently drive down development costs, allowing broader global distribution of electric and commercial vehicles, and enhance the positions of both companies.”

Ford CEO Jim Hackett adds “This alliance comes at a time of tremendous enthusiasm about the intersection of increasingly intelligent, connected vehicles in an ever-smarter world.

“This creates a huge opportunity to innovate and solve many of the world’s transportation challenges and deliver extraordinary benefits to customers – even as companies need to be selective about how they use their cash.”

Both companies are known for their commercial van and pickup vehicles, thanks to tradesman favourite, the Ford Transit and the VW Transporter, Amarok and Caddy. Putting heads together will create a line like never seen before, utilising the talents of both.

The use of the Volkswagen MEB architecture in Europe will represent a further core of the Volkswagen strategy for electric vehicles, and further efforts will be made by both companies to fulfil their Paris 2015 Agreement commitments. Both Ford and Volkswagon have plans to look at new ways to cooperate on electrical vehicle production.

The alliance between the two companies does not include cross-ownership, and in the marketplace, they will remain rivals.