Strategic Analysis of the Volkswagen-Ford Partnership

Description

The Volkswagen-Ford Partnership will open many doors for both companies in global markets, leveraging each other’s strengths and presence across various regions. The aim is to design and manufacture approximately 45 EVs for both companies, using VW’s MEB EV architecture, and this will help both companies dominate the global market, given their extensive networks.

Joint investments by both VW and Ford in Argo AI implies strong faith in the growth potential of the autonomous driving sector, with potential applications for both partners’ mobility service programs.

In addition, with the anticipated success of this partnership, a joint-venture can be expected in the near future, to counter competitors in the EV and autonomous driving sectors, including Tesla, Rivian, and Nikola.

The aim is to establish the dominance of both companies in the EV space and pioneer AI-based autonomous driving technology, which will result in profitable synergies for both companies, especially in terms of ridesharing and ridehailing targets.

With the outbreak of the COVID-19 pandemic, the shift in focus to small and localized models for small businesses will open up opportunities for the expansion of the pickup truck and the commercial van segments into new markets and emerging economies.

Decades of expertise in automotive design, manufacturing, and marketing puts the partnership in an excellent position to break and take over the EU and NA EV markets, thanks to VW’s EV technology and Ford’s extensive manufacturing capabilities. With plans for electrification and autonomous driving, both companies are in a good position to dominate the ridesharing and EV mobility markets before the end of the decade.

The reader will benefit from a thorough analysis of the VW-Ford partnership and the companies’ technology and growth strategies and how they will affect the global automotive industry, particularly in terms of EV and mobility service programs.