Automobile Industry

Ford & Volkswagen Could Form A Strategic Alliance; No Equity Arrangements

Ford Volkswagen Merger

In June 2018, Ford and Volkswagen singed a MOU (Memorandum of Understanding) and announced to explore a strategic alliance for improving their competitiveness and providing better services globally. Both the companies also agreed to co-develop a range of commercial vehicles. Having said that, both the companies made it very clear that there will no equity arrangements or cross ownership stakes. Read – Ford Cars To Be Powered By Mahindra Engines

Reports in media suggest that the timing for this potential alliance is now perfect as Ford is struggling with several major issues and looking for a ‘radical’ transformation. While US buyers are abandoning traditional sedans and coupes, the push for electric and autonomous vehicles along with growing demand for crossovers, SUVs and pickups are becoming increasingly challenging for the American carmaker. Read – China’s Auto Giant ‘Great Wall Motors’ To Enter India 

Volkswagen will also be benefited from Ford’s strong hold over the American market, especially in the SUV and pickup space. With this alliance, Ford will expand its business in markets like Europe, China and Latin America. Besides this, both companies might also share platforms and support each other expand their product portfolios. Read – Uniform Smart Driving Licenses & RCs Across India In 2019

Ford and Volkswagen are already in talks, and we might hear an official announcement on the alliance anytime soon.
Stay tuned to IndiaCarNews for the latest updates on this.

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