Breaking Down the New Volkswagen & Ford Collaboration

Two of the world’s great automakers, Volkswagen and Ford, have collaborated to form a global alliance to provide a competitive, cost-efficient, and practical solution for electric and autonomous vehicles. The two companies announced a joint venture on new commercial vehicles in January 2019, not yet available at our Volkswagen dealership. In July, they announced an expansion of this collaboration. Currently, the project includes investments in:

Argo AI

Volkswagen has already committed to investing $2.6 billion in Argo AI.1 A subsidiary of Audi AG, this Autonomous Intelligent Driving company has received a total valuation from VW and Ford of over $7 billion.2 Argo’s self-driving system will, in turn, become available for both automakers to integrate into their vehicles. It is being developed for use in commercial VW and Ford vehicles with the intent of reducing automotive crash-related injuries and fatalities on U.S. roads.

Electric Vehicles

Ford is also using its partnership with Volkswagen to design a new electric vehicle architecture. The MEB, or modular electric drive matrix platform, is planned for a 2023 release in 600,000 vehicles.3 The architecture will deliver more advanced driver-assistance technologies. It will soon be featured on new battery electric vehicles, consolidating electronics and reducing the number of microprocessors required.

Pickups

In early 2019, Ford and Volkswagen announced a plan to produce midsize pickup trucks. The first truck may be available by 2022, while Ford is currently developing a successor to the VW Amarok.4 Volkswagen has hinted at introducing it in the U.S. or putting a midsize Tanoak or Tarok concept pickup on the market. The two companies have partnered to soon introduce an Amarok in Europe, South America, Africa, the Middle East, and the Asia Pacific regions.

Commercial Vans

On the other hand, Ford announced plans to build larger commercial vans, for the 2022 model year, for both companies. This includes a city van for the European market and other select markets around the world. Both organizations anticipate a growth in demand for medium pickups and commercial vans and, therefore, a greater reach for new innovations and technological advancements that can make commercial vans more productive and safer.

EV Production Is Expected to Increase

By July 2019, Volkswagen had put $10 billion into electric vehicle development, with plans to produce 15 to 22 million battery-electric vehicles and introduce 50 different models by 2025. Planning to spend $11 billion on its electric vehicle program by 2022, Ford is developing its first long-range BEV and various all-electric and plug-in hybrids. It is also involved with another partnership, with battery-electric vehicle start-up Rivian, which involves a $500 million investment.5

Find New and Used Models at Our VW Dealership

Jeff D’Ambrosio Volkswagen in Downingtown is one of the most trusted VW dealers in PA. We offer a huge lineup of new and used certified pre-owned vehicles, specialize in high-quality customer service, and have an on-site parts and service center. To find the perfect vehicle for you or to take a test drive, call our sales team at 888-585-7794 or visit our Volkswagen dealership at 1225 East Lancaster Avenue today.

Sources:

1. https://www.cnbc.com/2019/07/12/ford-vw-confirm-plan-to-collaborate-on-autonomous-electric-vehicles.html
2. https://media.ford.com/content/fordmedia/fna/us/en/news/2019/07/12/ford-vw.html
3. https://media.ford.com/content/fordmedia/fna/us/en/news/2019/07/12/ford-vw.html
4. https://www.motortrend.com/news/ford-vw-partnership-heres-expect/
5. https://www.cnbc.com/2019/07/12/ford-vw-confirm-plan-to-collaborate-on-autonomous-electric-vehicles.html

Tags: Argo AI, Electric pickups and commercial vans, Volkswagen and Ford partnership
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