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Partnership to Revive the Automotive Industry: We Will Be Billions In Electric Car – News by Resources



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Ford Motor and Volkswagen will spend billions of dollars for the joint development of electric and autonomous vehicles, expanding the global alliance to reduce development and production costs, while at the same time, the German group is set to become the first winner.

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How fast these investments will bring profit is an issue that has not yet been answered in the automotive industry.

The directors of Ford and VW said that these new co-operation would save millions of dollars for each company, but they will need time to develop projects, and the size and timing of benefits are not clear.

Extending cooperation with Ford shows that VW could get more.

VW agreed to invest 3.1 billion dollars in the autonomous automotive industry Argo AI, but estimates that it could generate up to $ 20 billion of revenue by dividing MEB's electric vehicle architecture into Ford in Europe.

Both sides are still discussing additional agreements, including extending the agreement on the distribution of electric vehicles to other Ford electric vehicles, which could increase VW's benefits.

Ford and VW have already begun to work with commercial vehicles and medium-sized trucks as part of the wider efforts of the automotive industry to transform production and sales in line with stricter regulations and market fragmentation.

Ford's general manager, Jim Hackett, and VW, Herbert Diess, have refused to estimate the estimated revenue generated by this collaboration.

VW will invest $ 2.6 billion in Argo AI and buy 500 million dollars in Argo, worth $ 500 million from Ford. Analysts Evercore ISI said that the structure of the deal shows that each car manufacturer will own about 40% in the Arg, while the remaining titles will be owned by the Argo itself.

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