Volkswagen AG (OTC:VLKAY) and Ford Motor Co. (NYSE:F) are joining forces to build pickup trucks and delivery vans, the two companies said Tuesday.
The former rivals say they are going to work together to adapt to a rapidly changing automotive industry. The two companies will start delivering medium-sized pick-up trucks in 2022, Volkswagen and Ford said in a media statement issued on Tuesday.
"Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions," Volkswagen Chief Executive Officer Herbert Diess said in the release. "The alliance will be a cornerstone for our drive to improve competitiveness."
Building on vans, the partners are exploring potential collaborations on electric and autonomous vehicles as well. The potential move shows how carmakers are pooling resources to better compete with technology giants such as Alphabet Inc.’s Google that are making inroads as digital services undermine traditional business models.
The partnership on commercial vans and pick-up trucks will start to yield improved annual pre-tax operating results by 2023, the companies said.
