Report: Ford, VW Considering Alliance

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June 22, 2018—Consumers’ changing driving habits, along with the swift development of technology, have Ford and Volkswagen considering a unique alliance.

The OEMs, who are two of the world’s largest automakers, recently announced that they’re exploring a strategic alliance, potentially pairing up for projects like the development of vans.

“Markets and customer demand are changing at an incredible speed,” Thomas Sedran, Volkswagen’s head of strategy, said in a statement released Tuesday evening. “To adapt to the challenging environment, it is of utmost importance to gain flexibility through alliances.”

The pact doesn’t involve any financial commitment from either company, for now.

Traditional OEMs like Ford and VW are increasingly investing in evolving technology like autonomous vehicles and electric cars, along with services like vehicle-sharing. Yet, according to the New York Times, those traditional companies risk being left out in the cold before long, considering well-funded tech companies like Google’s parent company, Alphabet, have made significant strides with regard to driverless technology.  

The New York Times report suggested that commercial vehicles, including minibuses and vans, offer an opportunity for traditional OEMs, and that factor appears to have played a role in Ford and Volkswagen’s ongoing talks.  

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