Volkswagen and Ford Deal Close to Done: Report

The deal between Volkswagen and Ford to help the two automakers share and develop a new generation of shared electric and autonomous tech is almost done says a new report.

That comes from VW CEO Herbert Diess, according to Bloomberg. Diess reportedly said that the talks are “progressing well” and that they’re close to being finalised.

The remarks came at a gathering in Wolfsberg of 500 of the company’s top executives.

“Without a strong presence in the U.S. — still our weakest region — global trade conflicts risk putting us in a dire situation,” Diess said. “Today we are a company that’s strongly influenced by China. We need a counterweight in the U.S.”

The deal between the two is already said to include co-production of vans and pickups, and is part of VWs plan to increase scale and help save costs, in order to pay for new tech and make up for slowing sales. Diess said that Volkswagen needs to increase its stock valuation and that there could be more mergers and acquisitions in the auto industry, which is currently adapting to rapidly changing emissions regulations, increased electrification, and the rise of autonomous driving.

As Volkswagen has just announced that it has ended a deal with self-driving partner Aurora Innovation, it’s expected that VW will join with Ford on that company’s autonomous affiliate Argo AI. Ford and Argo announced yesterday that they have begun testing a third-generation of autonomous vehicle on the road in Detroit.

Source: Bloomberg