Following the recent reports, there are exploratory talks to jointly developing self-driving and electric vehicles in a far-reaching strategic alliance meant to save the companies of ford and Volkswagen billions of dollars. Both companies are expected to provide an update on the talks before the year ends.
According to reports, The Volkswagen company covers a conversation about potential collaboration s across some areas. these companies are hence teaming up to share the cost of developing autonomous and electric vehicles
The Volkswagen and ford companies are under much pressure to roll out more electric cars in Europe where emission rules are being tightened since the scandal of the Volkswagen diesel emission pollution scandal.
However, the chief financial officer of the Volkswagen company said that the carmaker was open to deeper alliances with outside companies primarily in the areas of autonomous driving.
The carmaker’s electric cars platform with ford is possible although the Volkswagen is currently concentrating on rolling out the electric vehicle’s technologies among its brands.
The Volkswagen officials have repeatedly emphasized that it is through economies of scale that can make electric cars a mass market to make them cheap or cheaper than the diesel vehicles.
In addition to this, The Volkswagen group is also investing 34billion euros in autonomous driving and plans to make 2to 3 million full battery electric cars by the year 2025. In July ford created a separate amount of money to house its self-driving vehicle operations and was seeking outside investors in a move similar to the one made by general motors with a cruise.
Following the reports, Ford also said that it would invest 4 billion us dollars through 2023 in this newly forms Autonomous ford vehicles including the 1 billion us dollars it previously had earmarked.
Both, Volkswagen and ford following their partnership are already part of the joint venture to develop an ultrafast electric vehicle charging station network across Europe. This will be a breakthrough between the two automobile vehicles when it comes to their rivals in the market.