Ford & Volkswagen to collaborate on self-driving cars and EVs

According to a media report, Ford and Volkswagen are in talks to jointly develop autonomous and electric vehicles (EV). The move is expected to save both companies considerable expenses and it is reported that both of them will share more details on it by the end of 2018.

Due to the toughened emission norms in Europe, both the German and American car makers are under pressure to launch EVs in the region. The Volkswagen emissions scandal was one of the reasons that lead to a revision in regulations. A joint venture on EVs would enable economies of scale for both companies.

Volkswagen’s CFO has said that the company is open to forge alliances with outside companies in the field of autonomous driving. At present, the VW group companies are investing Euro 34 billion into e-mobility and self-driving by the year 2022. Meanwhile, Ford has created a US$ 4 billion unit for self-driving operations and is seeking outside investors for the project.

Last month, both companies were considering a joint development and production alliance that included light commercial vehicles. The alliance would also work on co-developing new commercial vehicles.

Source: Reuters