Ford, VW Strengthen Alliance To Cover Electric Cars, Autonomy To Challenge Industry
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On Friday, Ford and Volkswagen Group tied the knot even tighter. The two automakers announced an expanded alliance relationship that will cover electric cars and autonomous vehicles.
We present this news as it comes as a major challenge to General Motors. GM has elected to largely go it alone (save for a Honda partnership) and develop its platforms and self-driving car technology in house. Granted, it acquired Cruise Automation, which was a major boon to its autonomous car operations. Both Ford and VW, arguably, lagged behind.
The marriage, which started as sharing resources and production for commercial vehicles and a next-generation VW pickup truck, expands to include a massive investment in Ford-owned Argo AI. Now, Ford and VW will be equal shareholders in the self-driving car unit with the latter investing $2.6 billion. The transactions involved will push Argo AI’s value to around $7 billion.
The bigger news is platform sharing, however. Ford has been granted access to VW’s cornerstone MEB platform. The modular electric toolkit, as VW refers to the MEB platform as, is the fruition of $7 billion spent at the German automaker for a flexible electric-car platform. MEB will underpin, for now, one electric vehicle that Ford will sell in Europe. A second model based on the MEB platform is currently under discussion, but it too will be relegated to the European market.
At home, Ford has partnered with startup Rivian to use the company’s skateboard platform for an electric vehicle. Ford also made a sizable investment into Rivian following talks that broke down with GM. Ford also says it has its own EV platform in the works that should underpin a Mustang-like electric SUV.
As the industry grows closer together, GM appears committed at tackling tomorrow’s challenges alone. It’s developed its own BEV3 architecture that can underpin front-, rear-, and all-wheel-drive electric cars. GM Cruise also continues to be a leader in self-driving technology, consistently bumping horns with Alphabet Inc.’s Waymo.
We’ll see the VW-based Ford electric car roll out in 2023. In the meantime, it’s still full speed ahead on commercial vehicle and truck development between the two automakers.
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Going it alone? Really, because last time I checked GM and Honda paired up to not only work together on Autonomy but also Hydrogen Fuel Cells…. I mean they’re more paired up than you mention. By no means is GM alone, and even if they were its not exactly a bad thing.
“a major challenge to General Motors”/”Both Ford and VW, arguably, lagged behind”
What an oxymoron! Then there’s this
GM Super Cruise Rumored To Receive Level 3 Upgrades
https://www.gmauthority.com/blog/2019/07/gm-super-cruise-rumored-to-receive-level-3-upgrades
Here is the reality of the situation. Ford failed to cut cost as they should have and material cost have lowered the profits from the Ford F150 from expectations. VW was all in on Diesel till they got caught and now are playing catch up on EV models that they had only done some work in. Both need to do a lot of spending on products they don’t really have the money to do right now,
On the other hand GM cut cost early on and has become very efficient with want they are doing. They have invested heavy in development of technology we will see in the future. They can afford to do it alone and at some point they will either license or sell the technology to others in limited partnerships or deals.
The Honda deal is a limited deal but beneficial to both companies.
I fully believe GM is looking to be as much a Supplier of EV systems to companies that can not do it alone as well as a MFG of competed products.
Many companies out there can not afford to do EV alone and will need to have help, merge or buy it from someone and I see GM as a EV platform supplier. Think of GM as becoming more like Intel vs being Gateway.
FCA, Mitsubishi and many others will need to seek help in some way and not all will be able to become partners.
Gm had done this in the past successfully with the old Turbo 350-400 Transmission in other models like Jaguar and Rolls Royce. Same for AC systems as the Harrison division used to supply many other brands.
GM is nowhere near mass marketing of EVs and reaching their stated goal of 25 EVs early next decade. They cannot even get an interior right let alone becoming a leader in EVs. The EV talk is a dog and pony show by Barra and company to try and impress analysts.
Ok, and exactly why would GM be scared by this ? Ford needs this partnership to remain in Europe. GM doesn’t sell cars there and has no market. GM already has a dedicated EV platform for the Bolt, and is working on a new platform for larger vehicles. GM needs to succeed big with BEV’s in China and the US. That’s their priority. Yes, they need to work hard and bring more to the market, but the engineers already have designs out there. It’s up to the management to capitalize upon it.
Yes, exactly GM lost Europe market and loosing China and dont care about America (low cost development of traditional car business: eg. new trucks and Cadillac – no hybrid technology). But if you want to survive in these technology changes you needs a relevant partner and market. GM loosing both.
Volkswagen ! There’s a lot more coming up this 2020 , If you are around La Cruces NM , Here’s a good site to check into, https://www.vivadodgeramfiat.com