Volkswagen Might Put Audi on the Back Burner, Spend More Time With Ford: Report

Steph Willems
by Steph Willems

According to sources who spoke to Reuters, Volkswagen Group has more interest in pursuing technological relationships with new partners, especially Ford, than continuing on with Audi as its main development hub. At least for a while.

VW CEO Herbert Diess will reportedly unveil a 10-year plan to his company’s board later this month, part of an efficiency initiative born of diesel fines and the need to stay ahead of rivals. While the move would lessen Audi’s importance in the group, VW would stand to save big on R&D costs. Meanwhile, Ford might get access to VW’s electric vehicle architecture.

“The strategy plan doesn’t only cover the next five years, but looks a decade ahead,” one of the sources said.

The proposal reportedly focuses on — what else? — autonomous and electric vehicle development, which no automaker can be without these days. Ford isn’t the only potential technology partner, but it gets top billing in this report. The two automakers already have a partnership that’s pretty wide-ranging in scope, though neither company has come out and said exactly where the tie-up will take them.

An Audi spokesman told Reuters there’s been no decision made on Audi’s role as the group’s autonomous driving developer. The division rolled out its latest driver-assist features in the new A8 earlier this year.

While autonomy can wait, at least for a bit, electric vehicle are a much more pressing matter in hyper-regulated Europe, as well as markets like China. VW has them almost ready to go; Ford, not so much. The Blue Oval brand took it on the chin in Europe in the last fiscal quarter, and VW’s dedicated MEB electric architecture would provide the company with the basis for a range of potentially profitable small electric cars.

In exchange for this, the sources claim, Ford might provide VW with something it desperately needs: a truck platform, and the engines to go with it. Alternatively, VW might invest in Ford’s self-driving efforts in exchange for the MEB platform.

As both automakers remain tight-lipped about the potential fruits of their partnership, we’re left waiting until VW’s Nov. 16 supervisory board meeting to see what Diess puts on the table.

[Images: Volkswagen Group]

Steph Willems
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  • Davekaybsc Davekaybsc on Nov 03, 2018

    I don't imagine Henry would love the fact that Ford decided to take their toys and go home because making anything other than SUVs and pickups is like, really hard. That, and what's become of Lincoln. I recently saw a 1938 Lincoln Model K V-12 touring coupe at a museum in California, that was the S-class coupe of its era. Compared to that, the modern, recently abandoned Continental doesn't come within a mile.

    • See 4 previous
    • Sportyaccordy Sportyaccordy on Nov 05, 2018

      @raph "What are Lincolns these days except a ploy by Ford to get old codgers to cough up a few extra dollars on slightly different shared platforms." The most successful Lexuses & Audis are the same thing and have been succeeding for over 20 years. Platforms don't have to be bespoke and RWD to be appropriate for luxury cars... if they did, Cadillac and Jaguar would not be knocking on heaven's doors. 99% of luxury customers don't give a crap about platforms; they buy on brand, experience and (relative) value.

  • WallMeerkat WallMeerkat on Nov 05, 2018

    I do think Skoda would be an easy fix for those missing Ford's cars. The Octavia could replace the Focus and Superb as Fusion. Federalisation should be straightforward as they are basically Golf/Passat based. Or perhaps some SEATs, the Leon is close in spirit to the Focus. Not sure if they could or would federalize a Fabia/Polo/Ibiza/A1.

    • Dtremit Dtremit on Nov 05, 2018

      Ford doesn't have a shortage of federalized platforms to sell here; they have a shortage of willingness to do so. I wouldn't be surprised to see a Passat-derived Mondeo replacement outside of NA, though.

  • Mikey My youngest girl ( now 48 ) dated a guy that had a Beretta with a stick shift. The Dude liked Beer and weed. too much for my liking..I borrowed my buddy's stick shift Chevette and give her short course on driving a manual .. I told her if the new BF has more than 2 beer or any weed ..You drive ...I don't care how many times you stall it, or or of you smoke the clutch . She caught on quite well ,and owned a succession of stick shift vehicles...An as an added bonus she dumped the guy.
  • Blueice "Due to regulation/govt backing, China is poised to dominate BEV/battery production, just as they do solar panel production, drone production, etc.Taiwan dominates production of certain types of chips due to regulation/govt backing and we saw how precarious such a situation is (especially with the PRC increasingly becoming aggressive towards Taiwan).That's why regulation/govt backing is aiming to build up local chip manufacturing."BD2, these businesses and or industries are not free market enterprises, buttcorporatist, bent on destroying their competitors with the use of governmentalunits to create monopolies. How safe are world consumers when the preponderance of computer chipsare made in one jurisdiction. Do you what Red China controlling any industry ??And it is well known, concentrated markets control leads to higher prices to end users.
  • Master Baiter I told my wife that rather than buying my 13YO son a car when he turns 16, we'd be better off just having him take Lyft everywhere he needs to go. She laughed off the idea, but between the cost of insurance and an extra vehicle, I'd wager that Lyft would be a cheaper option, and safer for the kid as well.
  • Master Baiter Toyota and Honda have sufficient brand equity and manufacturing expertise that they could switch to producing EVs if and when they determine it's necessary based on market realities. If you know how to build cars, then designing one around an EV drive train is trivial for a company the size of Toyota or Honda. By waiting it out, these companies can take advantage of supply chains being developed around batteries and electric motors, while avoiding short term losses like Ford is experiencing. Regarding hybrids, personally I don't do enough city driving to warrant the expense and complexity of a system essentially designed to recover braking energy.
  • Urlik You missed the point. The Feds haven’t changed child labor laws so it is still illegal under Federal law. No state has changed their law so that it goes against a Federal child labor hazardous order like working in a slaughter house either.
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