Volkswagen, Ford form alliance to develop CVs

Both the companies intend to develop commercial vans and medium-sized pickups for global markets beginning as early as 2022.

Volkswagen AG and Ford Motor Company formally announced on Tuesday that two major automakers will join together to develop commercial vehicles for global markets.

Dr. Herbert Diess, Executive Director of Volkswagen, and Executive Director of Ford, Jim Hackett, confirmed that the companies intend to develop commercial vans and medium-sized vans for global markets after 2022, Ford said in a statement.

The alliance will promote significant scale and efficiency and allow both companies to share investments in vehicle architectures that provide different capabilities and technologies.

In addition, the duo also signed a memorandum of understanding to investigate collaboration in autonomous vehicles, mobility services and electric vehicles and has begun to explore opportunities.

"Over time, this alliance will help both companies create value and meet the needs of our customers and society," said Hackett. "Not only will it drive significant efficiencies and help both companies improve their fitness, but it also gives us the opportunity to collaborate in shaping the next era of mobility."

The alliance, howecer, does not imply cross ownership between the two companies and will be goveed by a joint committee headed by the CEOs of both companies.