Ford and Volkswagen, who both produce popular models used in the commercial vehicle and leisure vehicle sectors, have announced a global alliance to co-develop commercial vans and medium-sized pickups for global markets from 2022.
Volkswagen AG and Ford Motor Company have signed a formal agreement to enable them to share development costs, leverage their respective manufacturing capacity and make cost efficiencies. They claim it will also boost the capability and competitiveness of their vehicles, while maintaining distinct brand characteristics.
Ford and Volkswagen both have strong commercial van and pickup businesses around the globe. This includes popular models such as the Ford Transit and Ranger, plus the Volkswagen Transporter, Caddy and Amarok. The Ford Transit and Volkswagen Transporter are popular models used for campervan conversions.
Between them both, Ford and Volkswagen produced approximately 1.2 million light commercial vehicles globally in 2018. This alliance could represent the industry’s highest production volume collaboration. They have also committed to exploring potential collaboration on electric and autonomous vehicles, plus mobility services.
The alliance does not involve any cross-ownership between the two companies.
Demand for both medium pickups and commercial vans is expected to grow globally in the next five years.
Through the alliance, Ford will engineer and build medium-sized pickups for both companies. Ford intends to engineer and build larger commercial vans for European customers, while Volkswagen intends to develop and build a city van.