A Ford and Volkswagen alliance to develop commercial vehicles potentially could aid both iconic auto makers to enhance their efficiency and to help them compete with Elon Musk-led Tesla Inc. (NASDAQ:TSLA) and other manufacturers seeking to serve the self-driving and electric car markets.
Ford Motor Company (NYSE:F) and Volkswagen Group (OTCMKTS:VLKAF; VOW.DE) reportedly have been engaged in talks for months to form an alliance but such an arrangement also could grow beyond collaborating on vans and other commercial vehicles. Both companies have faced daunting challenges in recent years and finding a way for each to share the cost of developing new vehicles could be critically important in helping them to survive a potential industry shakeout.
A Ford and Volkswagen alliance aligns with the goals of each company’s management to invest heavily in self-driving and electric vehicles. Ford announced earlier this year that it intends to spend $11 billion by 2022 on vehicle electrification projects, while Volkswagen reported it will devote almost €44 billion, or $53.5 billion, to e-mobility, autonomous driving, new mobility services and digitalization in vehicles and at plants through 2023.
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Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce,Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz.
