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  • William Maley
    William Maley

    By William Maley •

    Rumorpile: Ford and Volkswagen To Reveal Their Alliance At Detroit

      The big news at Detroit may not be a vehicle

    Ford and Volkswagen have spent a fair amount of 2018 talking about a possible alliance. We know that publically, the two have signed a "Memorandum of Understanding" focusing on commercial vehicles. But numerous rumors have been flying about saying this alliance could go further, such as autonomous technologies and electric vehicles. Nothing has been made official, that could be changing next week.

    Reuters has learned from two sources that Ford and Volkswagen will be making the alliance official next Tuesday during the Detroit Auto Show. It is unclear what the announcement will entail, possibly talking about commercial vehicles or more. The overall goal of the alliance is to reduce costs and streamline operations. Bloomberg is reporting that Volkswagen is expecting to hold a board meeting tomorrow to possibly green-light the alliance. Their sources say the talks between the automakers are progressing.  

    Automotive News adds more fuel to the fire as they note there is a “pending industry announcement” taking place at the main stage at 8:30 a.m. Organizers of the show declined to comment on what the announcement will be or which company requested it.

    Both Ford and Volkswagen declined to comment.

    Source: Automotive News (Subscription Required), Bloomberg , Reuters

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    David
    6 minutes ago, A Horse With No Name said:

    Should prove interesting.

    Biggest shock would come if they announce a merge of equals. That would be the far out crazy big announcement. I expect they will announce that they are going to share and build all products including cars, trucks and SUV's in addition to all things commercial.

    Should prove interesting, think if Ford can get access to the Porsche / Audi EV 4 door Sedan what that could do for Lincoln.  🤔

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    A Horse With No Name
    1 hour ago, dfelt said:

    Biggest shock would come if they announce a merge of equals. That would be the far out crazy big announcement. I expect they will announce that they are going to share and build all products including cars, trucks and SUV's in addition to all things commercial.

    Should prove interesting, think if Ford can get access to the Porsche / Audi EV 4 door Sedan what that could do for Lincoln.  🤔

    Or...if we want to appease the fine gentleman from Lancaster Pennsylvania. ..what Porsche can do with Lincolns flathead V12 technology.

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    oldshurst442
    30 minutes ago, ocnblu said:

    Thanks for the appeasement.  Just what the world needs... another empty silhouette of a car (electric Porsche/Lincoln mongrel POS Brougham GT-E).

    I thought it was love, sweet love.  (Its the only thing that there is just...too little of)

     

     

    Edited by oldshurst442
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    A Horse With No Name

    Whatever love happens won't result in anything close to a merger, as the Ford Board would never allow themselves to be owned by a foreign company.

    Although given Ford debt and Stock price it is fairly obvious they will need a white knight of one sort or another.

    Still....VW is nowhere near close to Ford in terms of the North American market.

    The Atlas is a nice effort, but nothing like the Explorer for example.  Swing a dead cat by the tail and you can hit a dozen Ford Escapes in an olive garden parking lot....last time I saw a small VW SUV out and about I can't even remember.

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    ccap41
    41 minutes ago, A Horse With No Name said:

    Whatever love happens won't result in anything close to a merger, as the Ford Board would never allow themselves to be owned by a foreign company.

    I cant realistically see a 50/50 merger either. No way. 

    Helping each other in certain markets for certain vehicle? Sure. 

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    A Horse With No Name
    3 minutes ago, ccap41 said:

    I cant realistically see a 50/50 merger either. No way. 

    Helping each other in certain markets for certain vehicle? Sure. 

    Most likely autonomous vehicles. Ford needs no tech and no help from VW. Much as I ahte to say it...VW is their own worst enemy in the North American market.  For decades they ahve tried fto force what they want to force on the North American Market vs. Ford who has responded to market and built what the market wanted.

    Funny how that works.

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    Robert Hall
    17 minutes ago, A Horse With No Name said:

    What does VW have from an EV standpoint that Ford needs? That does not make much sense...

     VWAG have a bunch of EVs about to enter production from VW, Porsche, Audi...  Ford had the Focus Electric, not much else. 

    Edited by Robert Hall
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    Drew Dowdell
    19 minutes ago, A Horse With No Name said:

    What does VW have from an EV standpoint that Ford needs? That does not make much sense...

    Sometimes it is just about production volume. If they can use a common design, they can get economies of scale by buying components together.

    3 minutes ago, Robert Hall said:

     VWAG have a bunch of EVs about to enter production from VW, Porsche, Audi...  Ford had the Focus Electric, not much else. 

    Fusion Energi, CMax, the coming Aviator and Explorer Hybrids

    The Fusion Energi is probably one the best but most ignored of the group because most people just see it as a Fusion hybrid. 

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    Robert Hall
    5 minutes ago, Drew Dowdell said:

     

    Fusion Energi, CMax, the coming Aviator and Explorer Hybrids

    The Fusion Energi is probably one the best but most ignored of the group because most people just see it as a Fusion hybrid. 

    Yes, Hybrids. I was only thinking pure EVs.

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    William Maley
    2 hours ago, A Horse With No Name said:

    Whatever love happens won't result in anything close to a merger, as the Ford Board would never allow themselves to be owned by a foreign company.

    Both companies have said that a merger is out of the question.

    33 minutes ago, A Horse With No Name said:

    What does VW have from an EV standpoint that Ford needs? That does not make much sense...

    The big thing is the MEB modular platform that Volkswagen is using for their upcoming electric vehicles. They are also a little bit further along EV development than Ford.

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    ccap41
    1 hour ago, William Maley said:

    Both companies have said that a merger is out of the question.

    Realistically, I would never consider it "out of the question". Things change, markets change, economies change.. too many variables to say it is completely out of the question. This just sounds like saving face for the current situation. 

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    A Horse With No Name
    48 minutes ago, ccap41 said:

    Realistically, I would never consider it "out of the question". Things change, markets change, economies change.. too many variables to say it is completely out of the question. This just sounds like saving face for the current situation. 

    It would be an odd mix of corporate cultures which are VERY different...not sure how that marriage would work out.  Very different sense of business and environmental ethics also. 

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    Drew Dowdell
    11 minutes ago, A Horse With No Name said:

    It would be an odd mix of corporate cultures which are VERY different...not sure how that marriage would work out.  Very different sense of business and environmental ethics also. 

    Germans and Americans don't seem to mix well when it comes to corporate operations.

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    David
    13 minutes ago, Drew Dowdell said:

    Germans and Americans don't seem to mix well when it comes to corporate operations.

    Proof in the Pudding or Sauerkraut with MB and Chrysler.

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