Volkswagen joins hands with Ford
Several auto majors collaborate in order to co-develop vehicles or to develop new technology in order to share costs and expertise for smoother development process. German auto giant Volkswagen Group and American auto major Ford are also following this trend by joining forces. The Chief Executive Officer of the VW Group, Herbert Diess has announced that the company has tied up with Ford in order to jointly develop commercial vehicles, while the companies have also identified other possible collaboration scopes.
Confirming the recent speculations regarding VW and Ford’s joint venture, Volkswagen announced its alliance with Ford during the annual board meeting press conference. As per the rumours, VW and Ford were supposed to join hands to develop electric vehicles.
Diess has fully negated the speculations of a full merger of the company with Ford, and said the companies never even considered that while discussing things.
During the conference, he also revealed that Volkswagen Group has upped its 5 year investment into the development of electric vehicles, autonomous and connected technology from €34 billion to €44 billion, which is around a third of the company’s total expenses for the period. Out of that total amount, €30 billion (Rs. 2,44,440 crore) will be put into the development of electric mobility, which includes everything from the development of platform, powertrain as well infrastructure development investment.
Diess has also shared his views about some reasons why most of the car buyers would not be adopting electric vehicles by 2020, saying that those who drive less than 30,000 km per year will choose to go the electric way. At the conference the company also discussed plans to enhance production efficiency, the basics of cost-cutting after the Dieselgate by 30 percent by the year 2025.
Volkswagen Works council boss Bernd Osterloh discussed the group’s wish to be a part of the battery manufacturing near to the place where the cars are manufactured. On this Diess said by adding that it is not actually feasible to expand the company’s Electric Vehicle production across Europe. As it is, currently Volkswagen’s three dedicated EV manufacturing facilities across Germany are said to be the largest network of electric vehicle production across Europe.;
Moreover during the conference, VW Group also said that the internal combustion engines will continue to be important for several years to come, despite the growing focus on electrification and a certain shift towards fully green mobility systems of the future. Osterloh confirmed that the brand will be offering upgraded diesel engines with reduced NOX and carbon emission levels.
On the other hand, American auto major Ford is also focusing on electric vehicles and advanced technology to be fully future ready. Autonomous vehicles and electric vehicles are the two biggest things of the near future and all the auto makers of the world are focusing on these two technology. Enhanced driver assistance and safety equipments are also among the top priorities of the global car majors and Ford and VW are no different.
As both Ford and VW are two big global auto majors and have years of expertise in developing cars and advanced automotive technology, the alliance of these two auto giants is certainly expected to benefit both the companies in many ways.
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