Ford Cautious but Optimistic Ahead of Key Volkswagen Meeting
Volkswagen’s supervisory board meets Friday to discuss how to handle the next decade of vehicle development, with CEO Herbert Diess expected to present a strategy that includes Ford as a key partner. The two automakers already have a Memorandum of Understanding with an eye on commercial vehicles, but VW could take the relationship further. Much further.
Ford’s Jim Hackett admits the talks are going well, but the CEO isn’t about to leap into bed without taking precautions.
Telling Reuters that he’s open to rival automakers’ cash when it comes to autonomous vehicles, Hackett said that any expansion of its partnership with VW would be a “delicate dance.”
On commercial vehicles, Hackett said the discussion is “going better than we thought it would,” adding that, “Herbert and I had a great discussion.” With sources already whispering to media about potential platform swaps, VW assisting Ford in Europe and Latin America, the Germans gaining access to the Ranger platform, and Ford borrowing VW’s electric MEB bones, the future contains a range of possibilities for the two companies. Hackett’s approaching it with caution, claiming no deal has been made.
“We compete in a bunch of areas as well,” he said.
Ford faces stiff competition in the autonomous vehicle field. GM-owned Cruise hopes to have a commercial self-driving ride-hailing fleet in service next year, while Waymo, backed by a promise of boatloads of Chrysler Pacificas, plans to cautiously enter that realm in December. Ford’s controlling stake in self-driving startup Argo AI is just part of its broader autonomous efforts, with the company entering into pilot programs with companies offering home delivery. Think pizzas and dry cleaning.
One goal, however, is for Ford Autonomous Vehicles to give birth to a versatile ride-hailing fleet of its own, using vehicles developed by Ford.
[Image: Ford Motor Company]
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Well its very evident that VAG will have the upper hand in these negotiations. Ford is limited in what it can offer VAG. VAG has the world very much stitched up compared to Ford. Ford might have the F Series, but these are very reliant on heavy protectionism and are not viable globally. Will Ford become subservient to VAG in any arrangement? Will VAG force Ford to adopt a more efficient business structure? Ford needs a new org chart made and to lean operations to become competitive globally, like GM. The world has changed and is changing rapidly, US industry need to get on board and start leaning operations and outsourcing what they are not efficient at.
This potential partnership is kind of funny in light of what I was thinking about the VW Passat recently - it's like a better version of the Ford Taurus. Someone also pointed out that the Fusion is somewhat Germanic in character, which is another interesting thing. But that car is going away, so, oh well.