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The proposed alliance between Volkswagen and Ford shows that the era of automakers is now seen as a tariff, a new technology and a stricter regulation of emissions, breaking with formerly global markets, according to an analysis of Agerpres conducted by Reuters.
Such alliances could represent the accomplishment of the former Fiat head of state, Sergio Marchionne, in 2015, about a new era in the consolidation of the industry. automobile.
Companies that used to use a single vehicle and whose global interest was to reduce costs are now looking to take advantage of market segments such as hybrid SUVs, vans or North American cars. city of Europe.
The transition to electric and autonomous vehicles and the global trade war have forced automakers to build separate factories for Europe, the United States and China.
For a long time, automakers want to be able to follow Henry Ford's idea of using a single production line to supply cars on all world markets at the lowest possible price.
They see as potential sources of cost reduction the standardization of technologies, in particular the engines and platforms on which vehicles are produced.
"Cost reductions are important in machine production – in theory, you can reduce costs by reducing production line costs, but you have to manufacture the product in different parts of the world, which leads to other things. costs with the production lines, "Carl told Reuters. -Peter Forster, veteran of the automotive industry and currently director of the Swedish group Volvo Cars.
Ford and VW are not trying to merge, but to reduce their costs by joining forces and technologies in distressed auto markets, but they do not want to back down.
After the Ford passenger car segment was not profitable in South America, China and Europe, it cut back on its Mondeo production plans and abandoned its new sedans.
At the same time, Volkswagen remains a niche player in the profitable truck market in the United States.
Forster, who declined to comment on the possible alliance between Ford and VW, said that a partnership focused on a particular topic could work better than formal alliances.
According to the ten-year strategic plan initiated by Herbert Diess, managing director of Volkswagen, the German company could expand its alliances with competing companies in order to reduce the development costs of electric cars and autonomous vehicles, but also to reduce costs. other types of cars.
Ford CEO Jim Hackett said this month that the US automaker was open to investment from automakers and other companies in its autonomous vehicle division, while recalling that the expansion of the partnership with the German company Volkswagen AG was "a delicate dance".
Ford and VW admitted that they were negotiating.
Hackett appreciated that the previously announced partnership to share commercial vehicle development costs "is doing better than expected".
"We had a very important discussion with Herbert on commercial vehicles," Ford said, warning that collaboration on other segments, such as electric vehicles or Latin America, should be carried out with much care and not yet adopted. no overall agreement.
"We also come across many areas," said Hackett.
Manufacturers around the world are negotiating alliances to share the costs of developing autonomous and electric vehicles. For example, the Japanese group Honda Motor announced this month that it would invest $ 2.75 billion and would take a stake in Cruise Automation, the division of the American giant General Motors Co., responsible for the development of autonomous vehicles.
Volkswagen and Ford are trying to launch more electric vehicles in Europe, where pollution rules are tightening following the VW scandal. Recently, Frank Witter, Volkswagen's chief financial officer, said the German automaker was open to the idea of forging alliances with other companies, particularly in the area of autonomous cars.
Volkswagen and Ford are already part of a joint venture called IONITY, which also includes their rivals BMW and Daimler, to develop a network of high-speed charging stations in Europe. In addition, in July of this year, Ford created a separate $ 4 billion division to consolidate its self-driving business and also began looking for outside investors for this division.
Ford Motor has approximately 200,000 employees and 67 plants worldwide. Ford's second largest automaker is also present in the Romanian market.
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