Our electric vehicles will be affordable for millions, not just millionaires.
Amid Volkswagen’s plan to turn Chattanooga into its North American base for electric vehicles, a new VW-Ford alliance is investigating working together on battery-powered and self-driving cars.
“Our industry is undergoing fundamental change,” said Volkswagen CEO Herbert Diess on Tuesday, citing areas such as electrification and autonomous driving.
Germany-based Volkswagen and Detroit-based Ford also said the alliance, announced at the North American International Auto Show, will allow a joint approach to medium-size pickup trucks and commercial vans on a global scale.
Jim Hackett, Ford’s CEO, said that company will design and build pickups for both automakers with an eye on South America, Africa and Europe for now.
Also, for both parties, Ford intends to engineer and build larger commercial vans for European customers, and Volkswagen intends to develop and build a city van.
Hackett expected the pickups to go to the market in 2022 with the commercial vans doing so in 2023. He said there are no details related to manufacturing locations.
Deiss said the agreement related to pickups potentially could involve the United States.
“It would be a successor to the Amarok,” he said about the pickup VW sells in several continents, but not in the U.S. “It would share a platform and join the Ford platform.”
Ford has reintroduced its Ranger midsize pickup.
VW, meanwhile, last year introduced a concept pickup truck called the Tanoak, but it hasn’t committed to assembly.
Hackett said that with the demand in medium pickups and commercial vans, the alliance “will provide more industry-leading products.”
“Together it will save on costs,” he said.
The companies said there will be no cross ownership and each will operate as two separate and competitive entities.
Hackett said the companies will continue to investigate working together on electric and autonomous vehicles and in mobility services.
Diess reiterated VW’s announcement Monday that it will invest $800 million in electric vehicles at the company’s Chattanooga plant that will include hiring 1,000 more workers.
“Our electric vehicles will be affordable for millions, not just millionaires,” he said.
Plans are to produce a fully electric SUV in 2022 at a new Chattanooga facility connected to its existing plant, which currently employs 3,800 people making the Passat sedan, Atlas SUV and soon-to-come Atlas Cross Sport five-seater. Also, VW is investing heavily in electrics in Europe and China.
“We’re exploring how to leverage this strength in this alliance,” Diess said. “I’m confident the ongoing dialogue might lead to further formal agreement in the future.”
The VW CEO termed the alliance as “visionary.”
“It will boost both partners’ competitiveness,” he said. “It’s an important signal to customers, employees and investors.”
The companies estimate the commercial van and pickup cooperation will yield improved annual pre-tax operating results starting in 2023.
Both companies also said they were open to considering additional vehicle programs in the future. The teams will continue working through details in the coming months.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.