Ford Motor Company (NYSE:F) and Volkswagen Group are exploring a strategic partnership, discussing several projects to boost their competitive edge.
The auto giants may collaborate on a range of commercial vehicles, aiming to meet evolving consumer needs and expand their global product portfolios.
READ: Ford Motor rises on 1Q earnings beat, planned exit from sedan sales in North America
“Markets and customer demand are changing at an incredible speed. Both companies have strong and complementary positions in different commercial vehicle segments already. To adapt to the challenging environment, it is of utmost importance to gain flexibility through alliances,” said Thomas Sedran, head of Volkswagen Group Strategy, in a press release.
The alliance would not involve any share swaps or other equity arrangements.
The German car giant entered into a strategic partnership with Hino Motors Ltd in April, looking at the possibility of collaborating on hybrid and electric engines and autonomous driving systems.
Shares of Ford were up slightly to US$11.90 in Wednesday morning trading.