Ford and Volkswagen want to create an Alliance

20 June 2018

The two giants are contemplating the joint development of some models

Ford and Volkswagen are among the largest players in the automotive market. If the German company claims the title of leader in the number of cars, then Ford, though behind, but it is the most preferable brand in the U.S. market, and in Europe the company's position is not so bad. Due to this, the company almost nothing to do with each other: at the moment they have no joint ventures. Now, however, they announced the establishment of strategic Alliance to "strengthen the competitiveness of each company and to improve the quality of customer service in the world".

Details are being kept secret. It is only known that the company has signed a Memorandum of understanding. Experts now Ford and Volkswagen are considering several areas in which they could work together. High probability that the possible Alliance will focus on commercial vehicles.

Ford and Volkswagen stressed that discussing the Union does not mean that the companies will exchange shares. A key goal is to reduce the costs of developing new models and technologies. Due to the financial burden and increase the total volume of production companies will be able to increase profitability.

Ford Transit Connect

According to Reuters, two group will develop commercial vans. At the moment, both manufacturers have a whole line of these cars: Ford launches Transit Connect, Transit and E-Series, Volkswagen Caddy, Crafter and T6.

At the same time, it is possible that discussing the Union will do other segments, including conventional cars: so far, Ford and Volkswagen are considering different variants of cooperation.

a Little history

Despite the one Ford and Volkswagen are not conducting joint Affairs, in the past they sometimes worked together. For example, in 1991 it formed a joint venture AutoEuropa Automóveis. Within its framework by 1995 was running a new factory in Portugal, which produces minivans Volkswagen Sharan, SEAT Alhambra and Ford Galaxy. It is noteworthy that the Ford Galaxy was almost completely built units Volkswagen: for it was accessible only to Ford's own two-liter gasoline engine and manual transmission, all other versions used German filling.

Ford Galaxy first generation

However, Ford was dissatisfied with the cooperation. All the family cars were very unreliable, so the Americans withdrew from the joint venture. In 2006, Ford unveiled the Galaxy second generation, in which nothing was from Volkswagen (but with hardware much has been borrowed from Volvo and Mazda, but that's another story). While the German company still uses plant in Portugal.

Another example of cooperation is the AutoLatina. Volkswagen owned a 51% stake, Ford — 49 %. This company has released several model lines for the market of South America. They were mostly budget cars: because of the crisis, both manufacturers have suffered losses in this region, so they decided to combine efforts to reduce costs. The Union collapsed in 1995, when the economic situation began to improve.

Ford Verona

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