• Several VW-Ford joint projects are under discussion
• Joint development of a global commercial vehicle range
• Potential projects aim to strengthen each company’s competitiveness
• Both companies said they would share updates as talks progress
• Strategic alliance excludes equity arrangements and cross ownership stakes

AN extraordinary combined announced from Volkswagen AG and Ford Motor Company announced taht both companies have signed a Memorandum of Understanding.

Volkswagen and Ford say they are exploring a strategic alliance.

The aims of the alliance would be to strengthen each company’s competitiveness and offer customers a better service on a global scale.

Both companies said they are exploring potential projects which extend across a number of areas.

These include jointly developing a range of commercial vehicles, pooling both company’s expertise to the benefit of commercial vehicle customers globally.

VW and Ford said that should both companies agree an alliance it would not involve equity arrangements, and cross ownership stakes.

Jim Farley, Ford’s president of Global Markets, said:

“Ford is committed to improving our fitness as a business and leveraging adaptive business models – which include working with partners to improve our effectiveness and efficiency.

“This potential alliance with the Volkswagen Group is another example of how we can become more fit as a business, while creating a winning global product portfolio and extending our capabilities.

“We look forward to exploring with the Volkswagen team in the days ahead how we might work together to better serve the evolving needs of commercial vehicle customers – and much more.”

Dr Thomas Sedran, Head of Volkswagen Group Strategy commented:

“Markets and customer demand are changing at an incredible speed. Both companies have strong and complementary positions in different commercial vehicle segments already.

“To adapt to the challenging environment, it is of utmost importance to gain flexibility through alliances. This is a core element of our Volkswagen Group Strategy 2025. The potential industrial cooperation with Ford is seen as an opportunity to improve competitiveness of both companies globally.

The companies said they would provide updates and additional details as talks progress.

In April, Ford announced it would stop selling saloon cars in the US. Instead it would concentrate on its successful pick-up trucks and SUV models.