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March 28, 2019 05:59 AM

VW signs contract with Ford for Amarok pickup successor

Jan Schwartz
Reuters
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    The VW Amarok successor will be based on a Ford platform.

    Volkswagen Group said it has signed an initial contract to develop a successor to the VW Amarok pickup with Ford. VW also said it is continuing discussions about extending its alliance with Ford to include autonomous driving and mobility services.

    Ford has a platform for its Ranger midsize pickup, which could help VW lower development costs.

    Other joint projectswith Ford could follow, Volkswagen Commercial Vehicles CEO Thomas Sedran said on Thursday. These could include additional vehicle projects, autonomous driving or shared use of electric mobility platforms.

    In January, VW and Ford agreed to develop a range of commercial vehicles and explore cooperating on electric and autonomous cars as part of an alliance designed to save each automaker billions in costs.

    "We are in constructive talks about taking a stake in Argo, the Ford division for autonomous driving. A joint company for offering mobility as a service is also a possibility," Sedran said. The talks will come to a conclusion in the coming months, Sedran said.

    Ford bought Argo AI, a Pittsburgh-based self-driving startup, in 2017 but development costs for autonomous cars have spiraled in recent years, leading several automakers to seek alliances and outside investors.

    Last month, The Wall Street Journal reported that VW is preparing to invest $600 million as an equity investment in Argo, with each company owning half of the business. VW would invest $1.1 billion in working capital for the entity's r&d operations, the report said. 

    Automobilwoche contributed to this report

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