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Home / romania / The partnership to sign the REVOLUTION of the automotive industry: we will invest billions in the electric car – News from sources

The partnership to sign the REVOLUTION of the automotive industry: we will invest billions in the electric car – News from sources



Ford Motor and Volkswagen will spend billions of dollars to jointly develop electric and autonomous vehicles, expanding a global alliance to reduce the cost of their development and production, while at the same time positioning the German group as the original winner.

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How soon these investments will bring profit is a matter that has not yet been answered in the automotive industry.

Ford and VW managers have said that these new collaborations will save millions of dollars for each company, but it will take time to develop projects and the amount and timing of the benefits are unclear.

Extending cooperation with Ford implies that VW can win more.

VW has agreed to invest $ 3.1 billion in Ford's Argo AI, but estimates it can generate up to $ 20 billion in revenue by dividing the architecture of the MEB electric vehicle with Ford in Europe.

Both parties are still discussing additional agreements, including the extension of the Ford Electric Vehicle Sharing Agreement with other Ford electric cars, which could increase the benefits of VW.

Ford and VW have already begun to co-operate in commercial vehicles and medium-sized pickups as part of the wider efforts of the automotive industry to reconfigure production and sales to meet tighter rules and market fragmentation.

Ford's general manager, Jim Hackett and VW, Herbert Dees, declined to assess the possible revenue generated by these collaborations.

VW will invest $ 2.6 billion in Argo AI and will buy $ 500 million in Argo worth $ 500 million from Ford. Evercore ISI analysts said the structure of the deal suggests that each car maker will own about 40 percent in Argo and the remaining titles will be owned by Argo himself.


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