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Volkswagen And Ford Signs MoU To Explore Strategic Alliance

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Volkswagen And Ford Signs MoU To Explore Strategic Alliance

Volkswagen AG and Ford Motor Company have announced that they have signed a Memorandum of Understanding that is aimed at strengthening each company’s competitiveness. However, this new alliance would not involve equity arrangement, which includes 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.”

Both Volkswagen and Ford are exploring possibilities in various areas, including the development of a new range of commercial vehicles.

Dr. Thomas Sedran, Head of Volkswagen Group Strategy said, “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.”

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