Volkswagen board is mulling next step in broader alliance and co-operation with Ford
VOLKSWAGEN is considering taking the next step in a broader alliance with Ford Motor Co, as the world’s largest carmaker seeks to position itself for the fundamental shifts sweeping the car industry.
The talks with Ford are progressing, and VW’s board is scheduled to discuss green-lighting the co-operation today, according to people familiar with the matter. If it’s approved, the companies will make an announcement on Tuesday at the North American International Auto Show in Detroit, said the people, who asked not to be identified because the details aren’t final. The two companies’ memorandum of understanding spans potential collaborations across a number of areas, and it’s premature to share additional details at this time, said Jennifer Flake, a Ford spokesperson. Mark Clothier, a spokesperson for VW, declined to comment.
VW and Ford executives have acknowledged discussions to expand co-operation beyond light commercial vehicles. The pact, which could include joint production and sharing electric-vehicle and autonomous-driving technology, would be the latest sign of how the shift to battery-powered cars and the advent of ride-hailing and other mobility services are reshaping the traditional auto industry.
Alongside the Ford talks, Volkswagen is setting up a network of fast-charging stations in China with local partners as it pushes deeper into infrastructure to make its multibillion-dollar investment in electric vehicles pay off, people familiar with those talks said.
Volkswagen and long-standing carmaker partner China FAW Group will each own 30 percent of the venture operating charging facilities nationwide, said the people, who asked not to be named as the discussions are private. Two other Chinese companies will hold the rest, they said.
Talks for the venture are near completion and it is scheduled to be set up in the first half of this year, the people said. SAIC Motor Corporation, another VW partner, is ready to get on board, with more Chinese car and battery makers expected to join in future, they said.
Volkswagen shares fell 1 percent to €145 (R2 316.42) at 9.32am in Frankfurt. The stock is down 18 percent in the past year.
Global manufacturers such as Volkswagen and Ford are shifting their focus to electric cars as waning sales of petrol guzzlers led to the first full-year slump in China’s car market in at least two decades.
While electric vehicles account for a small share of total car sales in the world’s largest car market, growth rates are impressive. China is targeting sales of 2 million so-called New Energy Vehicles in 2020.