Amid a massive restructuring effort spurred by double-digit declines in profits, Ford Motor Co. on Tuesday said it would launch a global alliance with Volkswagen AG.
The partnership — which will be governed by a joint committee including each firm’s CEO — will focus on developing commercial vans and medium-sized pickups, as well as autonomous vehicles. Ford CEO Jim Hackett said the effort will drive “significant efficiencies” to help both companies improve profits.
“Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world,” Volkswagen CEO Herbert Diess added. “At the same time, the alliance will be a cornerstone for our drive to improve competitiveness.”
Under the partnership, Ford will develop and manufacture medium-sized pickups for both companies by 2022 at the earliest.
The union comes as Ford struggles to grow sales in China — the world’s most lucrative auto market — and grapples with higher production costs due to President Trump’s double-digit tariffs on steel and aluminum imports.
The Dearborn, Mich.-based carmaker is undertaking a $11 billion restructuring effort that includes layoffs. Ford’s stock rose slightly to $8.99 in New York trading.
[Also read: Ford to lay off workers amid $11 billion reorganization]
