Ford, Volkswagen Announce Agreement on Producing Commercial Vans, Pickups

Ford and the Volkswagen Group have made their anticipated announcement of an agreement to collaborate on the development of commercial vans and midsize pickups. The two automotive giants will also seek to find opportunities to work together on developing electric and self-driving vehicles, within the optics of enjoying cost savings on both sides.

Discussions have been ongoing between the companies since last summer, and Ford CEO Jim Hackett and Volkswagen CEO Herbert Diess met on Monday at the NAIAS in Detroit at the Ford stand. The two firms have released statements regarding the progress of the discussions, and and the two CEOs made a joint appearance on Tuesday.

Under the agreement, Ford will produce a commercial vans and a midsize pickup truck for itself and for Volkswagen, possibly starting in 2022. According to Ford spokesperson Mike Levine, Ford’s Ranger (the version sold on the international market) will be basis for the pickup, while the van will be derived from the American automaker’s Transit Custom van sold in other markets.

For its part, Volkswagen will create a city van that will be sold by both companies.

The collaborations on vehicle models could extend beyond those specific projects. The companies have also agreed that they will explore possible partnerships on development in the areas of autonomous and electric vehicles.

Read more