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Ford and Volkswagen in talks to jointly develop autonomous and electric cars

Ford Motor Co. and Volkswagen AG have been holding discussions to explore possibilities of jointly developing self-driving and electric vehicles. This kind of a strategic alliance, if it were to go through, could mean saving costs by billions of dollars for both companies.

Although the two major automakers are tight-lipped about the alleged talks, it is believed that the companies will announce an update on their engagement before the end of this year.

Car-makers across the globe are increasingly getting involved in strategic alliances. Companies believe that in this way, they can provide a much better product to the end consumer at a lower price. Cost sharing can also save a huge sum of money that the companies spend as a part of their R&D activities.

Ever since being hit by the diesel scandal, Volkswagen has been heavily investing in developing electric vehicles. An example of this effort is the recent launch of it MEB platform which will form the basis of its upcoming EV family. The Germany based company also believes that EV adoption will accelerate across the globe only when they can compete with their diesel counterparts in pricing.

On the other hand, Ford has been investing heavily in the development of self-driving cars. Ford recently announced that it will be investing around $4 billion in its new entity, Ford Autonomous Vehicles LLC, through 2023. This also includes $1 billion earmarked for Argo AI, an autonomous vehicle start-up that it had bought in 2017.

Ford and VW are also a part of a EV Fast charging initiative, IONITY, along with other car-makers like BMW and Daimler. IONITY aims to develop ultra fast charging infrastructure across Europe.

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