Ford and volkswagen: talks stall

Cooperation talks between volkswagen and ford have stalled. Although both had reached an agreement in principle on the construction of vans, as reported by the handelsblatt with reference to company circles. However, the talks about an even deeper cooperation have reached a deadlock.

Volkswagen boss herbert diess is resisting paying a larger sum of money to get involved in the ford subsidiary argo. The latter develops systems for autonomous driving cars. Instead, diess is offering the americans the use of the company’s own electric vehicle kit. A volkswagen spokesman said that talks with ford are well underway and that they are in a final phase of negotiations. Still open points were clarified in brief.

Volkswagen and ford are mainly planning to cooperate on building smaller commercial vehicles in order to cut costs. According to diess, both manufacturers are too small to play a global role in this area. Together, research and development expenses could be shared, and plant capacity utilization would be improved.

However, an equity investment was not a goal of the talks or part of the wolfsburg-based company’s considerations, diess said in november 2018 as part of the group’s investment planning process. Volkswagen planned to announce the first results of the talks at the beginning of the new year.

Argo is currently looking for investors in a rough style. The company is talking to several automakers about this, argo ceo bryan salesky told the financial times mid-november 2018. However, he would not confirm that volkswagen is among these partners in talks around a shareholding.

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