Volkswagen is looking to tap Ford for its US production requirements amidst a backdrop of trade wars spearheaded by US President Donald Trump by imposing additional tariffs on imported vehicles under his "Make America Great Again" banner.
Following a signing of a Memorandum of Understanding between both major manufacturers last June, it looks like we’ll soon see Ford and Volkswagen partner up and share strategic plants to further improve production in both the US and in Europe. While the Memorandum itself is centered towards co-developing an array of commercial vehicles, we’re now seeing Volkswagen make the first move by possibly using Ford plants in the US to further bolster production stateside.
"We are in quite advanced negotiations and dialog with Ford to really build up a global automotive alliance, which also would strengthen the American automotive industry," Herbert Diess, CEO of Volkswagen, told reporters after a meeting at the White House.
Judging from this move, Ford and Volkswagen may well be heading towards a major alliance down the road.
"We are building an alliance with Ford which will strengthen Ford's position in Europe because we will share platform. We might use Ford capacity here in the U.S. to build cars for us. We need additional capacity here in the United States, we need an additional car plant for VW and Audi combined," added Dreiss.
From the looks of it, this strategic partnership between the Blue Oval and Wolfsburg is still in its infancy, as Ford head honcho Bill Ford indicates that the both manufacturers “haven’t gotten that granular in our talks yet” but clearly “we are talking with them” and the talks are going “really well.”
Source: Automotive News