Volkswagen zooms ahead in extension of alliance with Ford to electric, automated cars

Business News July 13, 2019 / 12:08 AM / Updated 8 hours ago Volkswagen zooms ahead in extension of alliance with Ford to electric, automated cars Tina Bellon, Edward Taylor, Paul Lienert 6 Min Read , NEW YORK (Reuters) - Ford Motor Co (F.N) and Volkswagen AG (VOWG_p.DE) said they will spend billions of dollars to jointly develop electric and self-driving vehicles, deepening a global alliance to slash development and manufacturing costs while positioning VW as the initial winner. How soon those investments will pay for themselves is an open question across the global auto industry. Ford and VW executives said the latest collaborations could save hundreds of millions of dollars for each company. But the projects would take time to develop, and the size and timing of the payoffs were unclear. The latest iteration of the Ford-VW alliance suggests the German automaker may hold the more lucrative cards - for now. Advertisement VW has agreed to plow $3.1 billion into Ford’s Argo AI self-driving unit, but estimates it could realize up to $20 billion in revenue by sharing its MEB electric vehicle architecture with Ford in Europe. The two sides are still discussing additional deals, including an extension of the EV sharing arrangement to other Ford vehicles, which could further boost VW’s take. Ford and VW have already started cooperating in the area of commercial vehicles and mid-size pickup trucks as part of the auto industry’s broader effort to redraw production and sales footprints to cope with more stringent regulation and fragmented markets. Executives, meanwhile, declined to put a value on the potential revenue generated by the data to and from their respective self-driving vehicles. Ford President and CEO Jim Hackett (R) and Volkswagen AG CEO Dr. Herbert Diess attend a news conference in New York City, New York, U.S., July 12, 2019. REUTERS/Mike Segar

NEW YORK (Reuters) – Ford Motor Co (F.N) and Volkswagen AG (VOWG_p.DE) said they will spend billions of dollars to jointly develop electric and self-driving vehicles, deepening a global alliance to slash development and manufacturing costs while positioning VW as the initial winner. How soon those investments will pay for themselves is an open question […]

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