Detroit - Volkswagen and Ford announced a new alliance on Tuesday, which will see them jointly develop bakkies and vans starting in 2022 in a bid to reduce costs in an increasingly competitive market.
The two auto giants have been talking for more than six months about an alliance, including potential cooperation on autonomous and electrification technologies for cars of the future. But the two sides were able to hash out an agreement only on commercial vehicles in time for an announcement during the Detroit auto show.
The deal does not involve cross-ownership, the companies said in a statement.
Under the alliance, to be governed by a joint committee headed by the chief executives of the two companies, Ford will engineer and build medium-sized bakkies for both firms, which effectively means that the next-generation Amarok will be based on the 2022 Ford Ranger.
The bakkie would be specific to South Africa, Europe and South America, Ford said. It remains to be seen however, whether the Amarok would be built in Ford's South African plant in Silverton, or one of the other Ranger plants.