Ford and Volkswagen in talks about strategic alliance

Carmakers Ford and Volkswagen have begun to explore a strategic alliance to strengthen both companies’ competitiveness and develop a range of commercial vehicles.

In a joint statement late Tuesday, VW and Ford said they were “investigating several joint projects.”

This new relationship would not involve any share swaps or cross-ownership deals but would develop a range of new commercial vehicles including vans to cut the costs of the new environment friendly technology.

Ford chief executive officer Jim Hackett said: “This potential alliance with Volkswagen Group is another example of how we can become more fit as a business. 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.”

Thomas Sedran, head of strategy at Volkswagen, said: “Both companies have strong and complementary positions in different commercial vehicle segments already. 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. The potential industrial cooperation with Ford is seen as an opportunity to improve competitiveness of both companies globally.”

Earlier this year VW already formed a commercial vehicle alliance with Japanese truck maker Hino Motors, a Toyota affiliate, to cooperate in diesel and hybrid engines, self-driving tech and connectivity.

Ford is also cooperating with Deutsche Post AG on electric vans.