Ford (NYSE:F) is teaming up with Volkswagen (OTCMKTS:VWAPY) and the two will be working together on a few different projects.
The first project that the Ford and Volkswagen alliance will yield is a medium-sized pickup truck. This pickup truck is set to come out in 2022 and will be available for customers to purchase around the world.
After the creation of the medium-sized pickup truck, Ford and Volkswagen will follow it up with commercial vans. Unlike the pickup trucks, these commercial vans will only be available for purchase in Europe.
“The alliance will drive significant scale and efficiencies and enable both companies to share investments in vehicle architectures that deliver distinct capabilities and technologies,” Ford says in a statement.
The two companies say that they are expecting the partnership between them to include improved annual pre-tax operating results. Ford and Volkswagen are expecting to see this benefit start showing up in 2023.
The Ford and Volkswagen alliance may also result in other projects between the two companies. This includes the possibility that they will work together on researching electric vehicles, autonomous vehicles and mobility services.
What the deal doesn’t include is any form of cross-ownership between the two companies. Instead, the alliance will be handled by a joint committee. This committee will include executives from both companies. It will be led by Ford CEO Jim Hackett and Volkswagen CEO Dr. Herbert Diess.
F stock was down 1% and VWAPY stock was down slightly as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
