Ford and Volkswagen Discuss Developing Vehicles Together
June 19 2018 - 5:47PM
Dow Jones News
By Austen Hufford
Ford Motor Co. and Volkswagen AG are exploring how they could
work together to better compete globally as cars become more
technologically advanced and customer expectations evolve.
The companies said Tuesday they were exploring a strategic
alliance that could include jointly developing a range of
commercial vehicles as well as other projects. The two companies
said they weren't discussing cross- ownership stakes or stock
arrangements, implying that the two companies aren't in merger
talks.
In recent months, Volkswagen approved a plan to prepare
Volkswagen Truck & Bus, its commercial-vehicle division, for a
potential stock-market listing as early as next year.
"Markets and customer demand are changing at an incredible
speed," Dr. Thomas Sedran, Volkswagen's head of strategy, said in
prepared remarks on Tuesday. "Both companies have strong and
complementary positions in different commercial-vehicle segments
already."
Ford has been working to implement a so-called corporate fitness
plan that aims to slash $25.5 billion in cumulative costs over the
next four years and help the Dearborn, Mich.-based company catch up
on profitability with its two traditional rivals, General Motors
Co. and Fiat Chrysler Automobiles NV.
This week, Ford purchased a long-abandoned train station in
Detroit that it plans to redevelop into a technology hub for the
development of electric and autonomous cars. The company says it is
aiming to transform itself from an old-line manufacturer to a
seller of high-tech transportation services.
(END) Dow Jones Newswires
June 19, 2018 17:32 ET (21:32 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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