Ford, VW Partner To Build Future Cars

Ford and Volkswagen announced a long-anticipated plan  to build vehicles together.
The automakers said they have signed an agreement to develop commercial vans and medium-sized pickups beginning as early as 2022.
The companies also agreed to “investigate” how they can work together to develop next generation vehicles, such as electric and self-driving cars.
Both companies also said they were open to considering additional vehicle programs in the future.
The auto industry is racing to develop new technologies and vehicles. Companies are looking for ways to free up billions of dollars to spend on development.
Ford has said it anticipates spending $11 billion restructuring its business in the coming years, while VW has announced that it will spend $50 billion by 2023 on an “electric offensive” to develop electric cars, self-driving vehicles and other new technology.
“You can’t do this alone,” said Ford CEO Jim Hackett . “All these efforts will be enhanced by sharing brainpower.”
“It is no secret that our industry is undergoing fundamental change, resulting from widespread electrification, ever stricter emission regulation, digitization, the shift towards autonomous driving, and not least changing customer preferences,” said Volkswagen CEO Herbert Diess. “In such an environment, it just makes sense to share investment, pool innovation capabilities and create scale effects in clearly defined areas.”
While the two companies will share some production plans, Hackett said he does not anticipate any work force reduction in any Ford plants as a result of this alliance. And two CEOs ruled out any joint ownership between the two companies.