Strategic Analysis of the Volkswagen-Ford Partnership

Strategic Analysis of the Volkswagen-Ford Partnership

Two of the Largest OEMs Come Together to Collaborate for EV Strategies, with Joint Investments in Autonomous Driving Technology, Electric Mobility, and Mobility Services

RELEASE DATE
08-Dec-2020
REGION
North America
Research Code: MFDB-01-00-00-00
SKU: AU02082-NA-MT_25018

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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.

Key Issues Addressed

  • What is the scope of the VW-Ford Partnership?
  • What are the core strengths and complementarities of the 2 partners?
  • What are the expected areas of technology cooperation?
  • What is the EV strategy for each partner? What are the EV goals for each partner?
  • What is the significance of the joint investment in Argo AI?
  • What are the mobility goals in place for mobility service programs?

Table of Contents

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top Three Strategic Imperatives on the Automotive Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Volkswagen (VW)

Ford Motor Company

Prelude to the Partnership

Core Competencies and Complementarities

Potential Strategic Outcomes of the Partnership

Pickup Truck Segment

Passenger Vehicle Segment

Commercial Vehicle Segment

Autonomous Vehicle Technology Development

Connected Vehicle Technology Development

Electric Vehicles: Investment Strategies and Technology Partnerships

Growth Opportunity: Strategic and Technology Partnerships for Autonomous Driving, Electric Mobility, and Commercial Vehicles, 2025

Growth Opportunity: Strategic and Technology Partnerships for Autonomous Driving, Electric Mobility, and Commercial Vehicles, 2025 (continued)

Challenges Ahead for the Partnership

A Peek into the Future of the Partnership

Key Conclusions

Scope for a Future Study

Legal Disclaimer

Related Research
The Volkswagen-Ford Partnership will open many doors for both companies in global markets, leveraging each others strengths and presence across various regions. The aim is to design and manufacture approximately 45 EVs for both companies, using VWs 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 VWs EV technology and Fords 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.--BEGIN PROMO--

Key Issues Addressed

  • What is the scope of the VW-Ford Partnership?
  • What are the core strengths and complementarities of the 2 partners?
  • What are the expected areas of technology cooperation?
  • What is the EV strategy for each partner? What are the EV goals for each partner?
  • What is the significance of the joint investment in Argo AI?
  • What are the mobility goals in place for mobility service programs?
More Information
No Index No
Podcast No
Author Eshwer Shivaprakash
Industries Automotive
WIP Number MFDB-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9807-A6,9813-A6,9882-A6,9965-A6,9AF6-A6,9B02-A6,9B13-A6