Volkswagen and Ford Motor are in talks to jointly develop self-driving and electric automobiles in a far-reaching strategic alliance supposed to save the companies billions of dollars, according to a person knowledgeable with the matter.
The German and U.S. automakers are expected to give an update on the progress of the discussions before year end, stated the person, who asked not to be identified.
Spokesmen for both automakers would only reiterate what they have stated before regarding the companies working on the development of commercial vehicles.
“Our (memorandum of understanding) with VW covers discussions about potential collaborations throughout a number of areas. It is premature to provide additional details at this time,” Ford spokesman Alan Hall stated in an email.
Automakers globally are in discussion about teaming up to share the expense of developing autonomous and electric vehicles. Partnerships on autonomous driving technology vary by place.
Honda Motor this month stated it would invest $2.75 billion and take a stake in General Motors’ Cruise Automation self-driving vehicle unit to develop autonomous vehicles together for deployment in ride service fleets worldwide.
VW and Ford are under pressure to present more EVs in Europe, where emissions rules are being tightened following Volkswagen’s diesel emissions pollution scandal.
Volkswagen Chief Financial Officer Frank Witter on stated on Tuesday that the automaker was open to deeper alliances with outside companies, generally in the area of autonomous driving.