Germany’s Volkswagen AG and America’s Ford Motor Co are expected to unveil an alliance today.
According to Reuters News, the alliance will see both automotive companies join forces on commercial vehicles and is likely to expand into joint development of electric and self-driving technology, moves meant to save the automakers billions of dollars.
Ford and VW will announce their partnership against the backdrop of the Detroit auto show, VW Chief Executive Herbert Diess told reporters on Monday.
A few months ago, Volkswagen and Ford have discussed cooperating in vans and other commercial vehicles, and have said that any expanded alliance would not involve a merger or equity stakes.
They have scheduled a joint conference call at 8:30 a.m. EST (1330 GMT) to provide an update on the status of the proposed collaboration.
The two automakers have been exploring closer cooperation as trade frictions force carmakers to rethink where they build vehicles for Europe, the United States and China.
The expanding alliance highlights the growing pressure on all global automakers to manage the costs of developing electric and self-driving vehicles, as well as technology required to meet tougher emissions standards for millions of internal combustion vehicles they will sell in the years to come.