VW, Ford Thinks It Is Holding Back As Widespread Negotiations, The Report Said

Ford

Discussions between the Volkswagen Group and Ford Motor Co. to form an alliance have been expanded to include potential collaboration to encourage and regulate autonomy to make vehicles with each other, people familiar with the matter told Bloomberg.

Potential collaboration in self-driving technology can result in significant cost sharing, said the person who asked for anonymity during negotiations. Ford CFO separately told Bloomberg News in an interview that the lecture was open.

"Cooperation is not limited to anything, different types of technology, product segments or geography," said Ford CFO, Bob Shanks, Thursday. "We have an extensive discussion about how we can help each other around the world."

Ford shares rebounded on the news and rose 0.8 percent to $ 9.06 at 11:30 am Friday in New York. Volkswagen shares also dropped Frankfurt trade.

A more critical alliance between Volkswagen and Ford has the potential to be one of the more attractive offers for the industry. VW is the world's largest carmaker and has spent tens of billions of dollars clean after a three-year diesel scandal. Ford is starting a global and expensive multi-year restructuring and only rejects the profit margin target set for 2020. Competitive competition is a way to reduce costs and get new cars and technology to market faster.

A VW spokesman said the talks with Ford went well but refused to specify the details.

Collaboration consultation

When VW and Ford first announced that they were exploring a joint project in June, the only area specifically discussed was the development of commercial vehicles. VW's Chief Executive Officer, Herbert Diess told reporters in August that the German giant was generally open to expanding cooperation with Ford outside light commercial vehicles and expressing previous joint projects to work well.

Ford has struggled to reverse losses in markets including Europe and South America. This was also in talks similar to Mahindra & Mahindra Ltd. to expand coalitions that began to develop models for India and emerging markets, including sports utility vehicles and electric cars. Together with his partner, Argo AI, Ford also said it was open to external investment, including providing free technology to the second car maker.

"With VW and Mahindra, we have not set boundary conditions from which we can work together," said Shanks. "We see the strengths and gaps of each company on both sides of the table and try to understand how we can help each other."

Ford Chief Executive Officer Jim Hackett signaled that the partnership was running when he spoke to analysts about the company's earnings call earlier this week.

"We hope to share more about the redesign of this global company," said Hackett, who heads the $ 11 billion company restructuring. "We will come to you more often, including we will talk about this strategic partnership shortly."

Stock Ford

Ford rose at least nine years on Thursday. The $ 2 billion profit in North America with high pickup sales force and SUVs exceeded analysts' expectations and confirmed the initial controversial decision of the automaker to leave sedans in America.

Attacking matters with VW and Mahindra can further enhance Ford's view. Morgan Stanley analyst Adam Jonas predicts Ford will lose $ 3.6 billion in Europe from 2019 to 2021, making it the least profitable car maker on the market.

In South America, where VW also operates, Ford has lost more than $ 4 billion since 2012. The distribution of costs to develop cars and new technologies with other car makers can help restore losses.

"In our world, where the future is obvious because it hasn't been realized, companies have to work more together," Shanks said today at a break from a meeting with investors and analysts in New York. "We have a history with VW. We are with them, and if you look at the strengths and weaknesses of everyone, we are right, right."

Likewise, with Ford's relationship with Mahindra, said Shanks.

"This is very important in this kind of partnership because this is a good part of the formula for success," Shanks said. "There are lots of examples where it doesn't happen and, in the end, they don't work."

Mahindra's spokesman declined to comment.

Shanks would not say there was a deadline to reach an agreement with the car manufacturer, but he said talks were underway.

"We are trying to solve the problem as soon as possible because we are all working to improve the fate of our respective companies," Shanks said. "So we are moving to get clarity and can move to real collaboration as quickly as possible."

Source:
http://www.autonews.com/article/20181026/COPY01/310269966/ford-vw-joint-venture-alliance