Le Lézard
Classified in: Transportation
Subjects: SVY, TDS

Ford and Volkswagen Alliance Aims for a Win-Win in Commercial Vans and Medium Pickup Trucks Arena


SANTA CLARA, Calif., Jan. 18, 2019 /CNW/ -- The recently announced partnership between Ford and Volkswagen in the commercial vans and medium pickup trucks arena served to highlight the strong global demand that both companies foresee in these two segments. The partnership was made public on the sidelines of the just concluded North American International Auto Show (NAIAS) 2019, in Detroit. It marks the first step in a partnership that seeks to leverage the complementary strengths of both automotive giants in a bid to boost their competitiveness.

"The agreement would provide scale and efficiency advantages in the commercial vehicle market, which has relatively lower volumes compared to the passenger vehicle market," noted Veerender Kaul, Global Vice President?Commercial Mobility at Frost & Sullivan. "The two companies could save hundreds of millions of dollars in product development costs, thereby improving the efficiency of deployed capital and assets. Additional savings will come from cost reductions in purchasing and manufacturing, further improving margins and free cash flow."

According to the terms of the agreement, Ford will build medium sized pickups for both companies, and will engineer and build the larger commercial vans, while VW will build a city van.  Interestingly, Ford's F-Series pickup, its most vital asset in the US market, will not be part of the partnership. The first products resulting from the alliance are scheduled to appear in the market in 2022. 

In addition, Volkswagen and Ford have indicated that they are exploring further possibilities for collaboration in connectivity, autonomous driving, mobility, and powertrain electrification. The companies have already signed a memorandum of understanding to investigate potential opportunities in these areas and are working to align on strategy. 

Both automakers will be hoping to draw on their respective competencies to accelerate innovation and growth. While VW has strong capabilities in electric vehicle technology, Ford has signaled its intent to look to the future by investing $4 billion in autonomous driving, including the $1 billion investment made in artificial intelligence startup Argo AI, in 2017.

"It is likely that Ford and VW have been discussing collaboration on connected, autonomous, shared mobility and electrification strategies (CASE) through 2018," remarked Mark Fitzgerald, Mobility Consultant at Frost and Sullivan. "We are unlikely to see the results of an alliance on CASE technologies until the next-generation of vehicles are launched in the 2022-2024 timeline."  

About Frost & Sullivan 
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: 
Start the discussion

Contact: 
Kristi Cekani  
Corporate Communications - Frost & Sullivan, Europe
P: +39 (0)2 4851 6133
E: kristi.cekani@frost.com
http://www.frost.com

 

SOURCE Frost & Sullivan


These press releases may also interest you

at 11:05
Great Place to Work®, the global authority on high trust workplace culture, recently unveiled BetterTM, a new podcast series of interviews with some of the best leaders in business. With operations in 220 countries, international courier and...

at 11:00
Serra Toyota of Decatur is taking part in the Toyota National Clearance event, going on now until September 3. Throughout the event the Decatur-area dealership is offering affordable 36-month leases on select new Toyota models. As a part of the...

at 11:00
Honda today announced the development of an innovative new passenger front airbag technology designed to better protect occupants in a wide range of frontal collision scenarios, including angled crashes between vehicles or a vehicle and another...

at 11:00
Canadians, tourists and businesses benefit from safe and well-maintained airports. From visiting friends and family, to travelling to medical appointments, or getting goods to market, we rely on our local airports to support and sustain vibrant...

at 10:54
PepsiCo and JetBlue are lighting up the sky in celebration of a new strategic partnership. Recently, the two iconic brands joined forces to refresh JetBlue's onboard travel experience, bringing a range of PepsiCo carbonated soft drinks and...

at 10:30
Members of the media are invited to attend an important infrastructure announcement with the Honourable Mark Eyking, Member of Parliament for Sydney?Victoria, on behalf of the Honourable Bernadette Jordan.   Date: Monday, August 26, 2019 Time: 11:00...



News published on 18 january 2019 at 05:47 and distributed by: