Car giants VW and Ford can unite

Car giants VW and Ford can unite

October 18, 2018 0 By autotimesnews

At the moment, negotiations on a possible merger of the two largest automakers VW and Ford are in full swing.

A memorandum of intent signed by Ford and Volkswagen in June of this year laid the foundations for a strategic partnership between the two largest automakers in the world. It is expected that they will not only focus on the joint development of commercial vehicles, but will also work together on other projects.

According to some automotive experts, this may mean that Ford and Volkswagen brands can reflect on the full-scale merger and creation of the world’s largest automotive company.

Insiders report that at the moment, the US-German partnership goes far beyond the commercial vehicle market.

In fact, cooperation under this agreement can be very beneficial for both parties. The German company can benefit from Ford’s strong position in the US market, especially in the SUV segment (crossovers, SUVs, pickups), while the American brand can use Volkswagen as a strategic ally in the automotive markets in Europe, Latin America and China, where its positions are on the contrary weak.

In addition, both automakers can share with each other platforms, thereby saving finances. For example, Ford was once an innovative brand in electrification, but now lags behind Volkswagen, which is going to introduce several electric vehicles in the coming years.