Every now and then, car manufacturers join forces to cut production costs and speed up development by working together on a variety of projects that bring benefits for both parties involved. It's been happening since the dawn of the automotive industry and the latest companies to ink a deal are none other than giants Volkswagen and Ford.
The two have signed this week a Memorandum of Understanding and are currently analyzing the prospects of establishing a strategic alliance with a focus on co-developing an array of commercial vehicles. In addition, Ford and VW are also exploring ways of how the two companies could "better serve the evolving needs of customers." In other words, it likely means they'll be keeping a close eye on market trends and might work side by side to fulfill demand for a certain type of model growing in popularity.
Both companies have made it crystal clear the strategic partnership will not lead to equity arrangements, so VW won't be buying a stake in Ford or vice versa.
Speaking about the tie-up, Ford's president of global markets, Jim Farley, said the following:
"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. 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."
VW Group's strategy boss, Thomas Sedran, declared:
"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."
That's all the two companies are willing to share for the time being, with more details to be disclosed as the discussions progress.