VW, Ford confirm talks on possible commercial vehicle tie-up

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Thread: VW, Ford confirm talks on possible commercial vehicle tie-up

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    VW, Ford confirm talks on possible commercial vehicle tie-up

    VW, Ford confirm talks on possible commercial vehicle tie-up
    Reuters Staff
    June 19, 2018
    Reuters.com

    FRANKFURT (Reuters) - Volkswagen AG (VOWG_p.DE) and Ford Motor Co (F.N) are talking about jointly developing and building a range of commercial vehicles including vans, the companies confirmed on Tuesday.

    A Reuters story earlier on Tuesday said VW and Ford were discussing joint production of vans.

    In a joint statement late Tuesday, VW and Ford said they were considering a strategic alliance and “investigating several joint projects,” including development of a range of commercial vehicles for global markets.

    The companies said the alliance did not involve an equity swap or cross-ownership stakes.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Interesting news, and a story that might not only underscore how important future collaboration is to the industry but also how "wounded" VAG is after their recent diesel-gate episode.

    If this was five years ago, no one could have anticipated that VAG would ever consider a commercial alliance of any kind with an outside company. With all their engineering resources, and a slate of in-house truck- and heavy duty assets, VAG could have pursued any light commercial vehicle development on their own.

    Quote Originally Posted by reuters.com
    VW also has an alliance with Navistar International Corp (NAV.N) and has said it is open to buying a majority stake in the U.S. truckmaker.
    GM really needs to jump ahead of VW on this one and take a stake. Now that GM has partnered with Navistar on the HD versions of the Silverado, they should protect their investment and take out a stake, if only to shy away competitors like VW (even if it's unlikely that VW would ever sell a VW-branded product in these segments Stateside).
    Last edited by nadepalma; 06-19-2018 at 08:20 PM.
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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Wow, think about the importance of the Transit lineup, Transporter/Caravelle, and Caddy and this is potentially a huge tie-in. Some will remember that VW and Ford have been here before with the first gen Ford Galaxy and the VW Sharan, both of which were produced on a VW-based chassis. Arguably, collaboration makes more even sense within the commercial vehicle segment as the typical commercial customer is less likely to care if their product shares a platform with a rival make.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Apologies for the double post. I just read up on this and, apparently, this alliance involves possible tie-ins beyond commercial vehicles. Could Ford be looking at a partner for European market passenger vehicles? Could VW be looking for a partner in the North American passenger car market? I can't imagine what else there would be to cooperate on between these two brands.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    I can see Ford looking to VW to supply car platforms to replace all of their current car platforms with and save on development cost.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Quote Originally Posted by roadkillz View Post
    I can see Ford looking to VW to supply car platforms to replace all of their current car platforms with and save on development cost.
    I don't know about all of their cars, they did just debut C2 which has cars like the Focus covered. I'm wondering if this might be to cover cars substantially smaller than Focus, like Ka.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    IMHO GM + VW + Navistar 3 way for light + medium commercials would be an interesting tie up and GM NEEDS to do something about their commercial van + dump that dopy "city" van nissan gives them

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Quote Originally Posted by nadepalma View Post
    Interesting news, and a story that might not only underscore how important future collaboration is to the industry but also how "wounded" VAG is after their recent diesel-gate episode.

    If this was five years ago, no one could have anticipated that VAG would ever consider a commercial alliance of any kind with an outside company. With all their engineering resources, and a slate of in-house truck- and heavy duty assets, VAG could have pursued any light commercial vehicle development on their own.


    GM really needs to jump ahead of VW on this one and take a stake. Now that GM has partnered with Navistar on the HD versions of the Silverado, they should protect their investment and take out a stake, if only to shy away competitors like VW (even if it's unlikely that VW would ever sell a VW-branded product in these segments Stateside).
    VW has had joint ventures with Mercedes-Benz for over two decades on commercial vehicles - so hardly a desparation move - it's a joint development with Ford, no shares or cross-holdings are involved.

    The Mercedes-Benz Sprinter / VW Crafter is sold in the US as a Freightliner Sprinter and Dodge Sprinter.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Quote Originally Posted by SVT74 View Post
    I just read up on this and, apparently, this alliance involves possible tie-ins beyond commercial vehicles. Could Ford be looking at a partner for European market passenger vehicles? Could VW be looking for a partner in the North American passenger car market? I can't imagine what else there would be to cooperate on between these two brands.
    That's always a possibility. Ford has worked with PSA on engines, with Fiat (briefly) in the past on the Ka (which was basically a rebadged 500), etc. With development costs increasing, it's entirely possible that they want someone to split costs with.

    Quote Originally Posted by Ruperts Trooper View Post
    VW has had joint ventures with Mercedes-Benz for over two decades on commercial vehicles - so hardly a desparation move - it's a joint development with Ford, no shares or cross-holdings are involved.
    I didn't realize there was an earlier tie up between MB and VW on this front. Thanks for the information.

    I didn't mean "desperate" in that they couldn't do it on their own and needed help in terms of development and engineering knowledge, etc. Rather, I meant it purely from a "we need to save dollars because we're paying out a ton of cash in diesel-gate litigation related matters and in improving our image from a PR/perspective". It's not secret that the fall out (in every sense of the word) is costing VW money and this could be a way to conserve resources while also putting out a solid product.
    Last edited by nadepalma; 06-20-2018 at 08:08 AM.
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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Quote Originally Posted by Ruperts Trooper View Post
    VW has had joint ventures with Mercedes-Benz for over two decades on commercial vehicles - so hardly a desparation move - it's a joint development with Ford, no shares or cross-holdings are involved.

    The Mercedes-Benz Sprinter / VW Crafter is sold in the US as a Freightliner Sprinter and Dodge Sprinter.
    VW and M-B have parted ways, the current VW Crafter Mk2 is no longer a joint-venture vehicle. So I guess VW has been looking for a new partner...

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Diesel engines are another potential area of cooperation which I didn't immediately consider. With the future of small diesel engines in Europe hazy to put is mildly this would seem to be a prime are for co-development as individual manufacturers likely don't want to end up holding the bag entirely if diesel offerings in Europe go south. With Ford and PSA joint venture becoming increasingly less cozy over time, this could be a sign that Ford is moving on to a new partner here.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Quote Originally Posted by SVT74 View Post
    Diesel engines are another potential area of cooperation which I didn't immediately consider. With the future of small diesel engines in Europe hazy to put is mildly this would seem to be a prime are for co-development as individual manufacturers likely don't want to end up holding the bag entirely if diesel offerings in Europe go south. With Ford and PSA joint venture becoming increasingly less cozy over time, this could be a sign that Ford is moving on to a new partner here.
    The diesel market volume in Europe is being decimated by dieselgate and the moves towards EVs, so as a result European and Asian car makers are rapidly withdrawing the diesel option on smaller engined cars, below 1.5 litres, ahead of Euro 6D-temp and RDE-WLTP which starts this autumn - it's quite possible that diesels up to 2.0 will be universally withdrawn by the end of Euro 6D sometime in the mid-20s and therefore make development of new I4 diesel somewhat pointless.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    PSA has become a lot bigger company with the arrival of Opel and Vauxhall giving it more
    channels to access customers. I wonder if this played a part in VW and Ford Joining forces
    with commercial vans...

    As if by magic, Bosch has revealed a new diesel emissions exhaust system that keeps emissions
    at super low levels - around one tenth of current regulation limits, diesel set for a comeback?
    Last edited by jpd80; 06-20-2018 at 05:33 PM.

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Quote Originally Posted by SVT74 View Post
    Wow, think about the importance of the Transit lineup, Transporter/Caravelle, and Caddy and this is potentially a huge tie-in. Some will remember that VW and Ford have been here before with the first gen Ford Galaxy and the VW Sharan, both of which were produced on a VW-based chassis. Arguably, collaboration makes more even sense within the commercial vehicle segment as the typical commercial customer is less likely to care if their product shares a platform with a rival make.
    There was another joint-venture in Brazil then Ford and VW did but didn't turned the way Ford planned. Here an article in French.
    http://boitierrouge.com/2017/09/17/f...ord-au-bresil/

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    Re: VW, Ford confirm talks on possible commercial vehicle tie-up

    Quote Originally Posted by nadepalma View Post
    GM really needs to jump ahead of VW on this one and take a stake. Now that GM has partnered with Navistar on the HD versions of the Silverado, they should protect their investment and take out a stake, if only to shy away competitors like VW (even if it's unlikely that VW would ever sell a VW-branded product in these segments Stateside).
    I guess they don't want to be joked about guys who'll tease them about the Routan.

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