Automotive partnerships to stay after Volkswagen-Ford alliance

A long history of failed mergers and mergers in the automotive sector – from Daimler-Chrysler to GM-Fiat and BMW-Rover – was reason to doubt that combinations or partnerships between major automakers would be a good idea .

But as the world's biggest automakers anticipate an era of increasingly electric, autonomous and shared vehicles, they are becoming more and more bed-mates.

Volkswagen and Ford Motor have scheduled a press conference in New York Friday after months of talks to join forces to develop autonomous and electric vehicles. Aligning with each other in the burgeoning fields would build on an existing partnership to work together on commercial trucks and trucks.

The growing alliance between the world's number 1 and the number 2 American is just the latest example of the giants of the automotive industry joining forces to cope with the transformation of their sector. The transition will be costly: since 2010, more than $ 14 billion has been invested in the technologies of autonomy and mobility, according to BloombergNEF.

"BMW and Daimler are teaming up and aligning with their autonomous vehicle program, just like Toyota and Uber, and you've seen GM and Honda, and now VW and Ford," said Mike Ramsey, automotive consultant. at Gartner. "This leaves Hyundai and Kia in desperate search for partners. And then the rest, like FCA and PSA. "

Here is an overview of the most remarkable links of recent years among major global car manufacturers:

BMW and Daimler promised earlier this month to team up to develop cars capable of crossing highways without human intervention starting in 2024. Although drivers will remain behind the wheel, the two companies said their vehicles would be able to navigate the highways and park alone.

Rival companies in the luxury automobile sector have also agreed to pay more than € 1 billion ($ 1.1 billion) to the carpool and recovery companies that have joined together to form a joint venture. earlier this year to compete with Uber Technologies and Lyft.

Already an Italian-American amalgam, Fiat Chrysler Automobiles had considered a merger with Renault earlier this year, but the potential contract suddenly collapsed due to the intervention of the French state and concerns that this could have for the future. existing alliance between Nissan Motor and Mitsubishi. Motors Corporation.

Yet it may be too early to dismiss the idea. Renault and French Finance Minister Bruno Le Maire said that negotiations with Fiat Chrysler could resume once the Renault-Nissan alliance is on a more solid footing. Fiat Chrysler Chairman John Elkann told the Italian newspaper La Stampa this week has described the attempted merger with Renault an "act of courage".

Nearly two years before Fiat Chrysler's proposed merger with Renault, the company formed a BMW-led coalition, which creates a platform for autonomous vehicles that is expected to be launched in 2021. Other members of the collaboration include Intel, Aptiv, Continental and Magna International.

And that's not all for BMW. Jaguar Land Rover announced in June that it would partner with the German automaker to work on its fifth generation of electric drive technology, which is expected to be rolled out next year with an X3 electric crossover. .

Earlier this year, Daimler decided to turn Smart, its struggling small car division, into a 100% electric brand located in China with the help of its largest shareholder, the Zhejiang Geely Holding Group.

The two groups also agreed last October to start trading in China by creating a 50/50 company. They plan to use models such as the Mercedes-Benz S-Clbad and E-Clbad and the ultra-Maybach luxury brand to give the first place to the market, Didi Chuxing.

Even the Honda Motor Company has gone from the one approach to which it has remained faithful for decades. The Japanese automaker has joined an existing business between Toyota Motor Corporation and the SoftBank Group earlier this year.

Last fall, Honda is committed to investing $ 2.75 billion in General Motors' Cruise Autonomous Driving Unit. The two were already working together on electric vehicle batteries and hydrogen fuel cells systems.

Toyota, whose battery-powered RAV4 partnership with Tesla has been an ephemeral clash between opposing cultures, has entered into a new electric vehicle alliance in 2017 with Mazda Motor Corp.

A few months after the announcement of the Mazda Pact, Toyota has added Suzuki Motor to this mix, with the two men planning to introduce electric vehicles to China and India starting in 2020. In June, Toyota added Subaru to its list of EV partners.