The deal calls for Volkswagen to participate in a Ford-backed startup that develops autonomous technologies, and for Ford to use components from electric cars developed by Volkswagen. The use of MEB will allow Ford to continue its efforts to meet obligations under the 2015 Paris Agreement, which provides limit values for average CO2 content in fleets. Ford is often perceived as a lag behind in the electromobility market. The company recently introduced its first production EV, the Mustang Mach-E, which will arrive in showrooms next year. This model does not use VW`s MEB platform. Michelle Krebs, a senior analyst at Cox Automotive, said the deal was smart «because developing electric vehicles and autonomous vehicles is expensive.» She said automakers see value in the ability to share development costs and reduce risk with technologically advanced products that do not yet have the necessary quantities to support the investments needed for launch. Ford and Volkswagen both say the deal could generate significant savings on operating costs as early as 2023. In a separate deal, Ford plans to build electric cars based on engines, batteries and other standardized components developed by Volkswagen and used in a model called ID.3, which expires next year. Volkswagen said the car would be sold for less than 30,000 euros in Europe, or $34,000, making battery-powered transportation more accessible to middle-income buyers. FRANKFURT/DETROIT — Ford Motor Co. and the Volkswagen Group have reached a framework agreement on sharing electric and autonomous vehicle technologies and have expanded their alliance beyond commercial vehicles, a source familiar with the matter said. Ford and the Volkswagen Group (VW) have signed the final agreement on their partnership in the commercial vehicle, autonomous technology and electric vehicle (EVs) sectors. Volkswagen has said it wants to use Ford plants in the U.S.

to build a few vehicles for the North American market, and while there may be joint production, Ford`s Le Hackett stressed that it does not plan to cut the company`s workforce as a result of the Ford-VW deal. An important part of the deal will be a Ford EV focused on the European market and developed until 2023 on the Volkswagen Group`s MEB electric architecture. The company says the Ford machine will be «highly differentiated» and will be designed and built at the U.S. company`s European site in Cologne, Germany. As a first step, the companies agreed to cooperate in the development of commercial vehicles in January 2019, with the extension of the plans last July to pickups and a Ford EV built on the Volkswagen Group`s MEB platform. The two companies have signed formal agreements for the partnership and have presented all the details of the projects in which it will participate. As in their previous agreement on commercial vehicles and mid-size pickup trucks, the partnership that extends between the two automakers will have the most impact on vehicles and platforms offered outside of North America, the companies said. Ford and the Volkswagen Group have announced their expected announcement of a cooperation agreement for the development of commercial vehicles and mid-sized vans. The two auto giants will also look for ways to collaborate on the development of electric and self-driving vehicles to achieve cost savings on both sides. As part of the deal, Ford could produce a mid-size commercial vehicle and truck for itself and for Volkswagen starting in 2022. According to Ford spokesman Mike Levine, Ford`s Ranger (the version sold in the international market) will be the basis of the pickup, while the pickup will be derived from the U.S.

automaker`s Transit Custom Van sold in other markets. The alliance will offer both companies considerable savings and allow them to develop new or updated offerings in important market segments with significantly reduced development costs. . . .