Ford, Volkswagen in talks to jointly develop self-driving, electric vehicles
Volkswagen and Ford have entered into "exploratory talks" about a partnership that might see them jointly develop self-driving and electric vehicles, according to reports based on information from sources familiar with the matter. The venture is a strategic alliance that could see the German and the US automaker save billions of dollars. Progress on the talks is expected to be announced before year-end. Here's more.
VW and Ford are already part of one joint venture
Notably, VW and Ford are already in a joint venture with BMW and Diamler to build an ultra-fast electric vehicle charging network across Europe. Additionally, VW and Ford are also under increasing pressure to deploy more electric vehicles in Europe, especially with the European Union (EU) tightening emissions rules in light of the recent diesel emissions scandal involving Volkswagen.
Recent announcements points towards a push towards EVs, autonomous cars
Further, the VW Group has already announced that it is willing to invest €34bn into the development of electric vehicles and autonomous vehicles by 2022. VW has also said that it has a target of manufacturing 2-3 million fully electric vehicles by 2025. Meanwhile, in July, Ford created a separate $4bn unit for its autonomous vehicle operations, and said it was open to investment from outside companies.
Although the companies declined to comment, the partnership makes sense
While spokespersons for both the companies refused to divulge any more details, the reported alliance does make sense given the global push towards autonomous and electric vehicles. Automakers around the world are discussing teaming up to develop such vehicles in a bid to reduce costs associated with the development of the requisite technology.
