Volkswagen and Ford to exploring strategic alliance

We had told you this before. The only way auto manufacturers around the world can survive is by synergy. They will at some point of the time, have to collaborate, share technologies and even vehicles to ensure that the profits keep coming in. While Suzuki and Toyota were the last heard of collaborations and one can see the fruits of their labour by as early as late 2019, there is a fresh alliance in the offing. German car maker Volkswagen and Detroit-based Ford Motor Company are exploring a strategic alliance. There are several projects being explored by both, most importantly the manufacture of commercial vehicles. The companies say that these alliance will help improve the competitiveness between Ford and Volkswagen. There will not be any cross ownerships stakes involved – Volkswagen cannot buy stakes in Ford and vice-versa.

The Ford-Volkswagen arrangement will be for the global market and not restricted to Europe or the US. Updates about the future projects and progress of the alliance will be announced in due course of time. The Volkswagen Group had last partnered with Tata Motors during the Geneva Motor Show 2017. However, the partnership was dissolved within a few months thereafter. Volkswagen had said that the Tata platform was not working out to be cost effective and hence the agreement was mutually annulled. In the past, Volkswagen had also tried to acquire Fiat previously but things didn’t work out back there too. We hope that the world’s largest car maker does find a fruitful partnership with the Blue Oval and they make racier yet economical cars for the masses. A Volkswagen EcoSport RS anyone?

 

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