Strategic partnership between Ford and Volkswagen AG will increase competitiveness and improve customer service

Ford Motor Company and Volkswagen AG have signed a Memorandum of Understanding. Companies say the new association will help them stay competitive while improving their customer service capabilities.

“The potential alliance with the Volkswagen Group is an example of how we can be the right business partners and expand our capabilities,” said Jim Farley, president of Global Markets, Ford Motor Company.

The goal is a large commercial vehicle market

The alliance will not include equity or ownership agreements. Automakers will consider what kind of cooperation and in what areas will be beneficial. But it will concern commercial areas, including the development of commercial vehicles.

“Markets and consumer demand are changing at an incredible rate. Both companies have strong and complementary positions in various commercial vehicle segments,” said Dr. Thomas Sedran, head of strategy at the Volkswagen Group. He added: "In order to adapt to a complex environment, it is critical to acquire the market flexibility that we gain through such alliances." This is the main element of the Volkswagen Group's strategy of cooperation with other manufacturers until 2025.

Up to Olympus

Both Ford and VW are expanding their lines to meet the evolving automotive market. Ford recently acquired a landmark facility, a new professional landmark in Michigan. The structure should become a new innovation center. While VW is conducting cutting-edge scientific research aimed at improving battery technology. Technologies of the companies will be combined and supplemented.

“We look forward to getting to know the Volkswagen team,” said Farley.

“A potential industrial collaboration with Ford is seen as an opportunity to increase the competitiveness of both companies worldwide,” added Dr. Sedran.

Negotiations between the two companies are expected to take place in the coming weeks.

Source: Ford Motor Company, Volkswagen Group.