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It was widely expected, but Ford and VW have now made it official. The two companies have announced a new partnership on medium-sized pickups and commercial vans starting in 2022.

2019 Ford Transit Connect Cargo Van

The new alliance will let both Ford and VW save money on the development of pickups that will be sold in global markets and commercial vans that will be sold in Europe. As part of the new alliance, Ford will engineer and build medium-sized pickups for both companies which are expected to go to arrive by 2022. Ford will also build larger commercial vans for European customers, and VW intends to develop and build a city van.

In addition, VW and Ford have signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles and have started to explore opportunities.

“Over time, this alliance will help both companies create value and meet the needs of our customers and society,” stated Ford CEO Jim Hackett. “It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility.”

“Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world,” stated Volkswagen CEO Dr. Herbert Diess. “At the same time, the alliance will be a cornerstone for our drive to improve competitiveness.”