They explore possible alliance on commercial vehicles to cut costs, compete effectively

By Austen Hufford 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (June 20, 2018).

Ford Motor Co. and Volkswagen AG are exploring how they could work together to better compete globally as cars become more technologically advanced and customer expectations evolve.

The companies said Tuesday they were exploring a strategic alliance that could include jointly developing a range of commercial vehicles as well as other projects. The two companies said they weren't discussing cross- ownership stakes or stock arrangements, implying that the two companies aren't in merger talks.

In recent months, Volkswagen approved a plan to prepare Volkswagen Truck & Bus, its commercial-vehicle division, for a potential stock-market listing as early as next year.

"Markets and customer demand are changing at an incredible speed," Dr. Thomas Sedran, Volkswagen's head of strategy, said in prepared remarks on Tuesday. "Both companies have strong and complementary positions in different commercial-vehicle segments already."

Ford has been working to implement a so-called corporate fitness plan that aims to slash $25.5 billion in cumulative costs over the next four years and help the Dearborn, Mich.-based company catch up on profitability with its two traditional rivals, General Motors Co. and Fiat Chrysler Automobiles NV.

This week, Ford purchased a long-abandoned train station in Detroit that it plans to redevelop into a technology hub for the development of electric and autonomous cars. The company says it is aiming to transform itself from an old-line manufacturer to a seller of high-tech transportation services.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

June 20, 2018 02:47 ET (06:47 GMT)