US: VW and Ford are joining forces to build trucks

Volkswagen and Ford will join forces to build pickup trucks, delivery vans, and possibly more, putting old rivalries aside to work together and confront a rapidly changing auto industry, reported Reuters.

Ford and Volkswagen announced their partnership against the backdrop of the Detroit auto show. The tie-up, which will starts with sales of vans and medium-sized pickups in 2022, will not involve a merger or equity stakes, the companies stated.

“It is no secret that our industry is undergoing fundamental change, resulting from widespread electrification, ever stricter emission regulation, digitization, the shift towards autonomous driving, and not least the changing customer preferences,” Volkswagen CEO Herbert Diess told reporters and analysts on a conference call.

“Carmakers around the globe therefore are investing heavily to align their portfolios to future needs and accelerate their innovation cycles,” he added. “In such an environment, it just makes sense to share investment.”

A deal centered around vans and pickups had been expected. Investors are now focused on the potential for additional deals they believe could offer greater savings. Those include potential deals around development of electric or self-driving vehicles, as well as combining forces in markets including North America, South America, Europe or China.

Full Content: Reuters

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