(Reuters) – Ford Motor Co (F. N) and Volkswagen AG (VOWG_p.DE saying they are spending billions of dollars on the development of the electric and self-driving vehicles, and the development of a global alliance to slash development and production costs.
Ford’s President and chief executive officer, Jim Hackett (R), and Volkswagen AG CEO Dr. Herbert Diess, attending a press conference in New York City, New York, New York, USA, July 12, 2019. REUTERS/Mike Segar
How soon this investment will pay for itself, it is an open question in the global automotive industry.
Ford, VW executives said the latest collaboration may be able to save hundreds of millions of dollars, and for each of the company’s business. However, the projects that you will take the time to look.
The transitions between the electric and self-driving cars, as well as the production, is uncertain, he said, Ford’s Automotive President, Joe Hinrichs, at a news briefing on Friday in New York at the time.
It is because of this uncertainty, and increased costs, “we are going to see more collaboration between automakers, Hinrichs said.
Ford and VW have already started to work in the field of commercial vehicles and mid-size pick-up trucks as a part of the auto industry’s broader effort to draw in the production and sale of foot-to go with the more stringent regulatory environment and a fragmented market.
VW to invest $2.6 billion in Today’s AI, Ford’s self-driving car venture, and the purchase of up to $500 million as of Today shares of Ford, the two automakers have equal stakes in the startup folder.
Ford will also build an electric car, in Europe, and with the help of the VW’s of his wife and children-electric-car-platform, the companies said.
“Our global alliance is beginning to show a greater commitment, and we will continue to look at other areas where we can work together,” VW’s Chief Executive, Herbert Diess, said on Friday.
Ford expects to build more than 600,000 electric vehicles in Europe over a period of six years, starting in 2023, the sourcing of components of the vehicle’s underpinnings with VW, help to reduce costs.
Hinrichs said it would take up to four years, with the design of the Ford of the electric car at the VW’s of his wife and children, architecture, and the rest of the Ford of Europe plant to build the vehicle.
VW said it had committed $7 billion to his wife and children-a platform, which is expected to be at the heart of the 15 million vehicles worldwide, the VOLKSWAGEN group over the next ten years.
Diess said, Ford would have to pay VW’s “set” for the use of VW’s electric-vehicle components, and that the sale of Ford vehicles in six years may add up to $10 billion.
Analysts at Citi said in a Ford with the license of the Volkswagen COMMITTEE’s platform was a “transformational step for both businesses.
“It will probably offer a VW with an unassailable scale advantage,” Citi analyst Angus Tweedie said in a note published on the 10th of July.
The partnership with VOLKSWAGEN on an electric vehicle, in Europe, it is a part of Ford’s previously stated $11.5 billion in EV investments around the world.
Hinrichs said that the VW-cooperation, it would have no impact on Ford’s plans to launch two new electric vehicles in the United States of america, including a battery-powered version of its F-150 pick-up, and a new Mustang-inspired crossover vehicle, which is expected to be named Mach, E.
The suppliers are familiar with Ford’s plans say that the No. 2 U.S. automaker, is developing a broader portfolio of electric vehicles, most of them are the ones that will run on the Ford and Lincoln brands in North America, and asia. A lot of these models are to be built on an updated version of Ford’s C2 global compact platform, ” she said.
In the wider-Ford-VW-group of the alliance, which involves cooperation on joint investments in Today’s AI, does not lead to a ” cross-ownership between the two companies.
Ford have made the Ford Autonomous Vehicles, LLC, by 2018, pledging to invest $4 billion up to 2023, and has sought outside investors to help share in the costs of the development of autonomous vehicles.
Slideshow (4 Images)
Volkswagen will be contributing its Autonomous Intelligent Vehicle (SUPPORT) of company Dream, which is to encourage the self-driving unit of employees, from 500 to 700.
The two car manufacturers are using Today’s self-driving technology in the development of their own individual vehicles.
Ford’s CEO, Jim Hackett, said that the automotive manufacturers will make parts of the data that is generated from the Conditioned self-drive of software.
Editing by Bernadette Baum