Volkswagen shares are higher Wednesday as the German carmaker has announced it has entered into a strategic partnership with US car maker, Ford.
The agreement won’t involve any financial or share changes. Instead, the two car manufacturers have agreed to potentially work together on commercial vehicles that better suit global customer needs.
By around 1035 BST, Volkswagen shares were 1.81% higher at €155.06. And, while Ford shares ended the US Tuesday session lower, the stock is currently trading in positive territory in pre-market activity.
Volkswagen, Ford strategic alliance
The two global car makers announced their strategic alliance earlier Wednesday. They said the agreement was aimed at improving their global competitiveness and could involve a tie-up on the development of new commercial vehicles.
“The companies are investigating several joint projects – including joint development of a range of commercial vehicles to better serve the evolving needs of customers globally,” a VW press release said. It added the two businesses would share updates as “talks progress”.
“This potential alliance with the Volkswagen Group is another example of how we can become more fit as a business, while creating a winning global product portfolio and extending our capabilities,” said Ford’s president of global markets, Jim Farley.
“We look forward to exploring with the Volkswagen team in the days ahead how we might work together to better serve the evolving needs of commercial vehicle customers – and much more,” he added.
Audi CEO relieved of Board duties
Separately, VW shared the news that the CEO of its Audi subsidiary, Rupert Stadler, has been temporarily relieved of his duties as a board member during the investigation into emissions testing fraud at the luxury car maker.
“On Tuesday, the Supervisory Board of Volkswagen Aktiengesellschaft accepted the request of member of the Group Board of Management Rupert Stadler to release him from his duties as member of the Board of Management of Volkswagen AG,” VW said in a statement.
“The release is a temporary measure, put in place until the circumstances surrounding Stadler’s arrest have been clarified,” the statement added.