Ford, Volkswagen to announce alliance: Source

Volkswagen and Ford have been in talks for a partnership since the summer but have said little about the form it might take.
Volkswagen and Ford have been in talks for a partnership since the summer but have said little about the form it might take.PHOTOS: AFP

NEW YORK (AFP) - Ford and Volkswagen are preparing to announce a strategic partnership, including in areas such as self-driving and electric cars, a person with knowledge of the matter told AFP on Wednesday (Jan 9).

The announcement could come on Tuesday during this year's Detroit car show, the person said.

The organisers of the auto showcase have set aside a time slot on the main stage that day between 8.30 and 9.30am local time (1330 to 1430 GMT) for an industry announcement but have given no further details.

The two carmakers have been in talks for a partnership since the summer but have said little about the form it might take.

Volkswagen has made no secret of its interest in Ford's utility vehicles but the person speaking to AFP on Wednesday said the partnership also would involve self-driving and electric autos.

"Our memorandum of understanding with VW covers conversations about potential collaborations across a number of areas," Ford spokesman Jennifer Flake said.

"It is premature to share additional details at this time. We look forward to sharing an update soon."

Such a major partnership would come as large carmakers are facing higher costs for steel and aluminium as a result of US trade tariffs. They are also under mounting pressure to adapt to competition from Silicon Valley.

Development costs also are rising as the carmakers race to bring autonomous vehicles to market ahead of Uber, Waymo and Tesla, among others.

Ford recently announced a vast restructuring, phasing out production of almost all sedans and compacts in North America and cutting its global workforce, which analysts say could idle factories.

Volkswagen meanwhile is working to move past the damaging "Dieselgate" emissions-cheating scandal, which eroded profits and tarnished the company's reputation.