Ford has announced that they are exploring a potential partnership with the Volkswagen Group that could result in multiple joint projects between the two automotive manufacturing companies.
The companies announced the signing of a Memorandum of Understanding that will commit the two sides to further talks regarding projects that could “strengthen each company’s competitiveness and better serve customers globally,” according to Ford.
The companies revealed little about potential projects, but did note that would could involve jointly developing a range of commercial vehicles.
“The companies are exploring potential projects across a number of areas – including developing a range of commercial vehicles together to better serve the evolving needs of customers. The potential alliance would not involve equity arrangements, including cross ownership stakes,” Ford said in a statement.
Ford President of Global Markets Jim Farley hinted that the alliance could expand beyond the development of commercial vehicles.
“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 – and much more,” he said.
Farley also said that partnering with Volkswagen would help Ford implement adaptive business models that improve the Dearborn, Michigan auto manufacturer’s efficiency.
“Ford is committed to improving our fitness as a business and leveraging adaptive business models – which include working with partners to improve our effectiveness and efficiency,” Farley said. “This potential alliance with the Volkswagen Group is another example of how we can become more fit as a business, while creating a winning global product portfolio and extending our capabilities.”
Volkswagen also weighed in on the talks, adding that the alliance could improve flexibility.
“Markets and customer demand are changing at an incredible speed. 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,” said Thomas Sedran, the head of Volkswagen Group Strategy. “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.”
Ford said that as talks progress, the two companies will provide updates and more detailed information.