Ford Motor Co. and Volkswagen AG plan to devote a significant amount for the joint development of electric vehicles and self-driving cars, expanding the global Alliance to reduce the cost of development and production, reports Reuters.
As stated by top managers of Ford and Volkswagen, the Alliance will allow each company to save hundreds of millions of dollars, but for projects will take time.
According to the Agency, Volkswagen is investing $2.6 billion in developer of automated driving technologies Argo AI and will buy shares of Argo Ford in the amount of $500 million as a result of the two manufacturers will also have equal shares in a startup.
The most important thing in the Telegram
Ford plans to produce more than 600 thousand electric cars in Europe for six years beginning in 2023, purchasing accessories for cars from Volkswagen that will help both companies to reduce costs.
Volkswagen was the largest car manufacturer in the world by the end of 2018.
Previously, Ford announced the investment of $11.5 billion in the production of electric vehicles around the world.
Volkswagen and Ford will use the technology of self-driving Argo to develop their own cars.