VW, Ford forge ahead with EV technology sharing to cut costs

Volkswagen and Ford are pushing ahead with plans to team up on electric- and self-driving vehicles even as the coronavirus derails other projects, according to people familiar with the matter.

The deal is expected to close by the end of next month, with both sides recognizing a need to share the large investments needed to develop battery-powered and autonomous cars, said the people, who asked not to be identified as the talks are private.

The talks with Ford are “progressing well,” a VW spokesman said by phone, without giving further details. Alan Hall, a representative of Ford’s autonomous-car partner Argo AI, said the plan is on track to close in the second quarter. Ford said separately it expects the same.

With the global pandemic bringing the automotive industry to its knees, both companies are keener than ever to move beyond an initial landmark agreement to join forces on light commercial vehicles and mid-sized pickups. Manufacturers

have been forced to rein in spending amid falling demand for cars, and sharing ballooning expenses for new technology can help ease the financial burden.

Under the plan, VW will invest about $2.6 billion in Argo. That includes $1 billion in funding and the $1.6 billion Autonomous Intelligent Driving unit of the German company’s Audi brand to create a bigger player to compete against Alphabet Inc.’s Waymo and General Motors Co.’s Cruise unit.