Ford and Volkswagen to Jointly Produce 8 Million Vehicles

Ford and Volkswagen will collaborate on three different vehicles, including a VW truck built on a Ford Ranger platform.
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Ford  (F) - Get Report and Volkswagen  (VLKAF)  will collaborate to produce 8 million commercial vehicles, expanding the two automakers' global partnership, the companies said Wednesday. 

The two automakers will build three different types of vehicles: a city van created and built by VW, a one-ton cargo van engineered by Ford and a Volkswagen medium pickup built on a Ford Ranger platform. 

While Ford, Dearborn, Mich., and Volkswagen, Wolfsburg, Germany, will be collaborating, the relationship does not involve cross-ownership between the two companies, according to their statement. 

"In light of the covid-19 pandemic and its impacts on the global economy, more than ever it is vital to set up resilient alliances between strong companies," Volkswagen Group Chief Executive Herbert Diess said in a statement.

"Commercial vehicles are fundamental to Ford today and an area where we will accelerate and grow, and working with Volkswagen on these platforms will provide both of us significant financial advantages in things like engineering, and plants and tooling," Ford Chief Operating Officer Jim Farley said. 

Ford also said it would add battery-electric versions of the F-150 pickup and Transit van. 

The two companies are further expanding their partnership after jointly investing in Argo AI, autonomous-vehicle technology that is being introduced in the U.S. and Europe, at a valuation of $7 billion in July 2019. 

Ford and Volkswagen have an equal stake in the company with the pair owning "a substantial majority" of Argo AI. 

Ford shares at last check were down 4.5% at $6.91. VW shares were off 0.6% at $176.

Yesterday, Trevor Milton, executive chairman of electric-vehicle company Nikola  (NKLA) - Get Report, told Yahoo Finance: "My goal is to take the throne from the Ford F-150."