Ford, VW Plan to Announce Alliance Details at Detroit Auto Show

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During the Detroit auto show, Volkswagen and Ford are planning to make a big announcement on January 15, 2019. For months, partnership between the two major car giants was going on, which was confirmed on Wednesday. Discussions about the alliance continues, and close sources state that there is a possibility that the announcement may be delayed.

Both the auto giants refused to give any comments about the announcement. If the firms are planning to go ahead with the plan, the auto show’s organizers have booked an hour long window for them on Tuesday morning. On the show’s lineup, it is termed as a, “pending industry announcement.” The Detroit Auto Dealers Association, who have organized the show, have refused to talk about the event and declined to reveal if the convention center’s main stage is booked during the early morning slot on January 15 and for which company. The event has been recorded on the lineup since its release December 14, 2018.

Specifics of the partnership are ambiguous, but the two firms will work as partners on various fronts to decrease costs and simplify operations. However, both the parties have already made it clear that the alliance will not include any merger.

Ford and Volkswagen have collaborated in the past and in June a MOU was signed in order to discover a goals in various areas, which includes development of commercial vehicles. In the past year, their partnership included electric vehicle platform sharing, pickup swaps, and joint U.S. plants.

It is a well-known fact that Ford is planning on reducing the workforce in the coming future. However, they didn’t get into the details about the number of cuts. At the same time, Volkswagen is burdened with expenses due to its diesel affair and its upcoming electric vehicle push. Hence, a tie-up between the two companies could be profitable for both.

The automakers are planning to partner on self-driven vehicles and also on midsize vehicles. According to recent news, this month Ranger was reintroduced by Ford in the U.S. market and according to Volkswagen’s CEO Herbert Diess, they are thinking of basing its next-generation Amarok off the Ranger.

He further added that, they want to utilize some of U.S. Ford plants with extra capacity to manufacture VW cars, although Ford has less options. Executive Chairman Bill Ford in December revealed that the discussion was going well.

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