There has been new reports that VW and Ford set to Reveal New Updates on Autonomous and Electric cars. Previously, we heard that Volkswagen AG has agreed to invest about $2.6 billion in Ford Motor Co.’s autonomous-vehicle partner, Argo AI.
According to specialist familiar with the matter, analysis shows that this alliance with Ford will share the high risks and costs of developing self-driving, electric vehicles in a deal that values the startup at $7 billion.
Ford and VW set to unveil new details on electric and self-driving cars.
In the meantime and on Friday this week, Volkswagen and Ford is set to announce the next step in their mutual effort to develop the next generation of vehicles in the face of huge competitions to their businesses.
VW and Ford meeting – Jim Hackett, the Ford CEO and Chief Executive of Volkswagen in the person of Herbert Diess is expected to hold a joint press conference on Wall Street New York to provide update concerning the agreement they first announced 12 months ago.
Was the Alliance of Volkswagen and Ford Successful?
As far as we currently know, the joint collaboration have been unsure. About seven months ago, they said they would manufacture commercial medium-sized pickups and vans beginning as from 2022.
During that press release, they also said they were examining how they will develop the next generation of cars, such as self-driving vehicles and electric cars. With that in mind, complete details of those plans are expected on the next joint press release on Friday.
Competition of New Technologies on Self-driving and Electric cars
As we step into newer technologies, all of the world’s foremost automakers are competing to develop and self-driving and electric cars. In the light of this, native automakers are now troubled that they could be left behind by new changes in the market.
This is because of the tougher environmental reg1ulations being brought about by Europe and other continents. Also, new players such as Tesla (TSLA) as well as Uber (UBER) and potentially deep-pocketed tech companies such as Amazon (AMZN) and Google parent Alphabet (GOOG).
The cooperation above is part of a bigger movement in the industry of carmakers coming together to develop next generation driverless vehicles.
Joint Ventures to Develop Driverless Vehicles
Other German automakers Daimler (DDAIF) and BMW (BMWYY) have created a partnership that will develop autonomous technology.
In line with that, it is reported that Honda has invested huge amount of money in General Motors’ driverless vehicle unit.
Renault (RNLSY) and Fiat Chrysler (FCAU), which is already in joint venture agreement with Mitsubishi and Nissan, recently held collaboration talks (which end unsuccessfully) was inspired by a wish to share expenditure.
In January this year, Hacket while speaking at a press conference with Diess said single auto company can’t do this alone. He also said that all the efforts of carmakers will be improved by sharing intelligence.”
In a bid to enhance brainpower, both Volkwagen and Ford have declared ambitious plans of their own beyond the growing partnership.
Furthermore, Ford has announced that it expects to spend about $11 billion streamlining its business in future. Around the world, the company so far has involved securing money and losing operations.
Previously, VW has said that it will spend around €44 billion ($50 billion) in 4 years times, on an “electric offensive” to develop electric cars, driverless vehicles and other upcoming innovations.
Even though Ford (F) manufacturing company is a strong market share in the US, seconded by General Motors (GM) in terms of auto sales, it has struggled to battle Volkswagen’s supremacy in the entire Europe.
In the interim, Volkswagen has struggled with the United States market, sprawling not only local companies but also Asian carmakers in market share.
Due to competition, you will agree that there are limits to how close a joint venture of the two carmakers can form. A formal partnership was always doubtful, if not awkward, because of the sole nature of each company’s ownership arrangements.
- Ford-VW alliance expands to include autonomous and electric vehicles
- VW to Invest in Ford-Backed Autonomous Startup at $7B Value
- VW and Ford cooperate on self-driving, electric car technology
- Ford Stock Nears Buy Point On Self-Driving Car, Electric Vehicle
Moreover, Ford efficiently remains in the control of the founder’s descendants Henry Ford, whereas Volkswagen owned by the German state of Lower Saxony, (where it is located) has around 21% of its shares.
As a matter of fact, both auto companies essentially need to play catch up because they have very strong competitors in the industry working tirelessly to develop electric vehicles.
Presently, Ford does not sell any electric-only cars. Nevertheless, a huge part of the $11 billion reformation funds has an eye towards developing self-driving and electric cars.
For some time now, Volkswagen has been under strong pressure to clean up its image over the wake of a massive diesel emissions cheating scandal that was revealed by US investigators.
- Simple, Low Cost Ways to Improve Information Security
- Prevent Being Hacked Online by Cyber Criminal Hacker
- Secure File Sharing Websites & Free Online Cloud Storage
- Ethical Questions about Self Driving Cars in USA
VW sustainability spokesman Guenther Scherelis told newsmen on business talks that Volkswagen is on record with plans to be CO2 neutral by 2050. Truly speaking investing in electro mobility is the best method to achieve that.
By the same token, Volkswagen’s approximations show that electric vehicles will make up about 40% of their fleet in 30 years’ time. Correspondingly, VW plans to sell some seventy electrified models by 2028.
Additionally, within the same period, they intend to market over 22 million electric cars. Guenther said they intend to do these sales with Europe, China, and the United States as its main market share.