NEW YORK (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 in VW’s as the first one.
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 would take time to develop, and the amount and timing of the withdrawals was not clear.
The latest iteration of the Ford-VW alliance will allow the German automaker to keep on with the more lucrative cards for the time being.
VW has agreed to plow $3.1 billion in Ford ” s Dream AI, self-driving unit, but estimates it would be able to achieve a maximum amount of $20 billion in revenues by the share of its COMMITTEE electric vehicle architecture by Ford in Europe.
The two sides are still additional services, including the expansion of its EV-sharing arrangement for the other Ford vehicles, which will continue to be able to boost the VW’s.
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.
The managers, meanwhile, have decreased the value of the potential revenue that can be generated by the data, to-and-from their respective self-propelled vehicles.
Ford’s Chief Executive, Jim Hackett, said in a news briefing on Friday in New York that he expects to see “fairy chimneys, the data from the vehicle that is making use of Today’s self-driving technology.
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.
VW’s CEO, Herbert Diess, said at the briefing on the Ride’s platform was “the best solution is to Volkswagen,” the speed of self-driving vehicles to the market, and that Ford and VW, together with a plan to use that platform as a global industry standard.”
Ford will also build an electric car, in Europe, starting in 2023, with the help of the VW’s of his wife and children-electric-car-platform, the companies said.
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
“Our global alliance is beginning to show a greater commitment, and we will continue to look at other areas where we can work together,” Diess said.
Ford expects to build more than 600,000 electric cars in Europe for more than six years, and the sourcing of components of the vehicle’s underpinnings with VW, help to reduce costs.
Ford’s Automotive President, Joe Hinrichs, said it could 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. A lot of it to his wife and children, the development costs can be recouped from the revenues generated from the sale of the Ford.
Diess said, Ford would have to pay VW’s “set” for the use of VW’s electric-vehicle components.
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.
It was not clear whether some of these future Ford’s Service can be migrated to the VW’s of his wife and children, platform versions, the German car maker will be built in Europe, China, japan and North America.
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.
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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.
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.
(Image: Reuters-analysis-of-29, global car manufacturers are investing – tmsnrt.rs/2Hcr3H4)
Editing by Bernadette Baum