New Ford-vw tie-up
The collaboration is expanding
Ford and Volkswagen have jointly announced that the expansion of their global alliance will include electric vehicles, alongside the development of autonomous tech and commercial vehicles.
As part of the deal, Ford will make use of the German giant’s MEB modular electric platform for “at least one high-volume fully electric vehicle in Europe” that will be launched in 2023. Ford plans to deliver more than 600,000 Meb-based vehicles over a six-year period, with a second model under discussion that could “almost double” the volume of MEB supply to Ford.
VW will supply the platform, the lithium ion battery system and structural components. Ford will design the car at its own facility in Cologne, Germany, and assemble it in an undisclosed European factory.
VW CEO Herbert Diess claims the scaling of the MEB platform in this way “drives down development costs for zero-emission vehicles, allowing for a broader and faster adoption… This improves the position of both companies through greater capital
efficiency, further growth and improved competitiveness.” Both makers will continue to explore further joint avenues into electric mobility.
The second major cornerstone in VW’S and Ford’s relationship will see the German maker invest in Argo AI – an autonomous car partner that Ford first backed in 2017.
VW will put forward just under £2.1 billion, bringing the total valuation of Argo AI to more than £5.6bn.
Both firms claim Argo AI’S self-driving system is the first with commercial deployment plans for Europe and the US. It aims to deliver a level-fourcapable self-driving system for “ride sharing and goods delivery services in dense urban areas”.
Ford CEO Jim Hackett said: “While Ford and Volkswagen remain independent and fiercely competitive in the marketplace, teaming up and working with Argo AI on this important technology allows us to deliver unmatched capability, scale and geographic reach.”
The two car makers also talked about their previously confirmed collaboration to develop commercial vans and pick-ups. Both are expecting demand in these segments to grow in the next five years.
Ford will engineer and build a medium-sized pick-up for both companies for Europe, Africa, the Middle East, Asiapacific and South America, launching in 2022.
The US firm will also be in charge of a joint large van for European customers in the same year, while Volkswagen will build a “city van for sale in Europe and other select markets”. Key models, such as Ford’s Transit and Ranger and Volkswagen’s Transporter and Amarok, will remain in the line-up.