Readers of this report will benefit from a thorough analysis of the VW-Ford partnership and the companies’ technology and growth strategies and how they will affect the global automotive industry, particularly in terms of EV and mobility service programs.
The Volkswagen-Ford Partnership will open many doors for both companies in global markets, leveraging each other’s strengths and presence across various regions. The aim is to design and manufacture approximately 45 EVs for both companies, using VW’s MEB EV architecture, and this will help both companies dominate the global market, given their extensive networks.
Joint investments by both VW and Ford in Argo AI implies strong faith in the growth potential of the autonomous driving sector, with potential applications for both partners’ mobility service programs.
In addition, with the anticipated success of this partnership, a joint-venture can be expected in the near future, to counter competitors in the EV and autonomous driving sectors, including Tesla, Rivian, and Nikola.
The aim is to establish the dominance of both companies in the EV space and pioneer AI-based autonomous driving technology, which will result in profitable synergies for both companies, especially in terms of ridesharing and ridehailing targets.
With the outbreak of the COVID-19 pandemic, the shift in focus to small and localized models for small businesses will open up opportunities for the expansion of the pickup truck and the commercial van segments into new markets and emerging economies.
Decades of expertise in automotive design, manufacturing, and marketing puts the partnership in an excellent position to break and take over the EU and NA EV markets, thanks to VW’s EV technology and Ford’s extensive manufacturing capabilities. With plans for electrification and autonomous driving, both companies are in a good position to dominate the ridesharing and EV mobility markets before the end of the decade.
Key Issues Addressed
- What is the scope of the VW-Ford Partnership?
- What are the core strengths and complementarities of the 2 partners?
- What are the expected areas of technology cooperation?
- What is the EV strategy for each partner? What are the EV goals for each partner?
- What is the significance of the joint investment in Argo AI?
- What are the mobility goals in place for mobility service programs?
1. Strategic Imperatives
- Why Is It Increasingly Difficult to Grow?
- The Strategic Imperative 8™
- The Impact of the Top Three Strategic Imperatives on the Automotive Industry
- Growth Opportunities Fuel the Growth Pipeline Engine™
2. Overview of the Companies
- Volkswagen (VW)
- Ford Motor Company
3. Overview of the Partnership
- Prelude to the Partnership
- Core Competencies and Complementarities
- Potential Strategic Outcomes of the Partnership
4. Pickup Trucks, Passenger Vehicles, and Commercial Vehicles - Segment Overview
- Pickup Truck Segment
- Passenger Vehicle Segment
- Commercial Vehicle Segment
5. Autonomous, Connected, and Electric Vehicles - Technology Development
- Autonomous Vehicle Technology Development
- Connected Vehicle Technology Development
- Electric Vehicles: Investment Strategies and Technology Partnerships
6. Growth Opportunity Universe - The Automotive Industry
- Growth Opportunity: Strategic and Technology Partnerships for Autonomous Driving, Electric Mobility, and Commercial Vehicles, 2025
7. Challenges and the Road Ahead
- Challenges Ahead for the Partnership
- A Peek into the Future of the Partnership
- Key Conclusions
- Scope for a Future Study