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Ford-Volkswagen Alliance Could Be Announced At 2019 Detroit Auto Show

As Ford of Europe announced thousands of job cuts, rumor has it the Blue Oval and Volkswagen will announce their strategic partnership at the 2019 Detroit Auto Show next week on Tuesday. The alliance’s details aren’t known at this point, but hearsay suggests the association will extend beyond commercial vehicles.
Ford Edge 1 photo
Automotive News is citing “sources with knowledge of the talks,” claiming that talks are ongoing. To this effect, Ford and Volkswagen could postpone the announcement until the final details are put on paper and rubber-stamped by the higher-ups of both companies.

First and foremost, it’s understood that Volkswagen plans to base the next generation of the Amarok mid-size pickup truck on the Ranger. William Clay Ford Jr. claimed a month ago that talks are going in the right direction, adding that the “culture fit [with Volkswagen] is good.”

The Germans, on the other hand, are open to sharing the MEB (Modularer Elektrobaukasten) with the Ford Motor Company if the Blue Oval wishes to double down on EV technologies, production processes, and cost-saving solutions.

But wait, there’s more! In addition to the Volkswagen Group, the Ford Motor Company has another alliance with Mahindra in India, with dealers opening their showrooms to the Blue Oval. The reason for this cooperation is the lack of channel partners in the Indian subcontinent, a market that FoMoCo hasn’t conquered despite the fact Ford India Private Limited began production in 1926.

Turning our attention back to Volkswagen, the Germans expect to rely on Ford for manufacturing capacity in the United States of America, more so because some factories are underutilized at the present moment. Despite this possibility, Volkswagen is looking to open a second manufacturing facility in the U.S. for both the mothership and Audi.

Chief executive officer Herbert Diess said that Volkswagen is in advanced negotiations with the state of Tennessee, and one of the reasons such a factory is needed is – no surprises here - to avoid import tariffs.

Scott Keogh, CEO of Volkswagen Group of America, claimed that an electric car plant in North America is of absolute necessity if the automaker wants to grab a piece of the EV pie that Tesla dominates in the United States. Having said these, one of the EVs that Volkswagen will manufacture stateside is expected to cost in the ballpark of $30,000 to $40,000.

 
 
 
 
 

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