Ford and Volkswagen are set to team up once more. This time, however, they won't be building pickup trucks, vans and light commercial vehicles. Instead, the two large automakers are expected to announce a partnership to develop and boost technologies for electric vehicles and autonomous vehicles.

In a report by Automotive News, the deal between Ford and Volkswagen regarding EVs and autonomous vehicles are expected to be finalized very soon. Specifically, VW CEO Herbert Diess says that the talks with Ford are “going well” with an official announcement expected to be made soon. As mentioned earlier, both Ford and Volkswagen already have a deal with regards to commercial vehicles and pickup trucks.

The extended deal involving the development of EVs, autonomous vehicles and related technologies are expected to help both companies reduce the cost of tech development. Diess adds that it would also help counter slowing sales in China amid rising trade tensions and tighter emissions laws.

“Without a strong presence in the U.S. -- still our weakest region -- global trade conflicts risk putting us in a dire situation,” Diess said. “Today we are a company that’s strongly influenced by China. We need a counterweight in the U.S.”

It is still uncertain when the deal will be announced but, sources say it could be made public as early as July. More so, the deal is expected to include Ford's autonomous affiliate Argo AI.

At the moment, specific details regarding the potential EV and autonomous vehicle partnership are still scarce. However, do expect more details about the Ford-Volkswagen deal in the coming weeks.

Source: Automotive News