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Ford and VW expand commercial vehicle collaboration

Ford and Volkswagen have signed a new joint projects agreement

Ford and Volkswagen will jointly develop a range of new commercial vehicles under an expanded partnership agreement.

News of the collaboration was first confirmed in January 2019, when it was revealed that the new Ford Ranger and VW Amarok pick-up trucks would be jointly developed.

This latest announcement outlines plans for a new Ford city van, based on the VW Caddy platform. It will be created and built by VW and sold under both marques from 2021.

There will also be a one-tonne cargo van, to replace the Transit Custom and Transporter, engineered by Ford.

Ford will also benefit from a new electric vehicle by 2023, built on Volkswagen’s Modular Electric Drive, expanding on Ford’s zero-emission capabilities.

During the lifecycles of the products, the companies expect to produce up to a combined 8 million of the medium pickup truck and both commercial vans included in the commercial relationships.

“In light of the Covid-19 pandemic and its impacts on the global economy, more than ever it is vital to set up resilient alliances between strong companies,” said Volkswagen Group CEO Dr. Herbert Diess.  “This collaboration will efficiently drive down development costs, allowing broader global distribution of electric and commercial vehicles, and enhance the positions of both companies.”

Ford’s use of Volkswagen’s MEB architecture in Europe will represent another cornerstone in Volkswagen’s electric vehicle strategy, and further efforts by both companies to fulfill their commitments to the Paris 2015 Agreement. 

“This alliance comes at a time of tremendous enthusiasm about the intersection of increasingly intelligent, connected vehicles in an ever-smarter world,” said Ford CEO Jim Hackett.  “This creates a huge opportunity to innovate and solve many of the world’s transportation challenges and deliver extraordinary benefits to customers – even as companies need to be selective about how they use their cash.”

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