Ford Expands Electric Vehicle Deal With Volkswagen

Volkswagen's ID4. Image credit: Volkswagen

Ford to manufacture additional all-electric vehicle on Volkswagen’s platform, expanding planned line-up for European market

Ford has expanded its electric vehicle partnership with Volkswagen to add a second car for the European market based on its rival’s platform.

The expanded deal will also see the US carmaker doubling its planned volume of vehicles to be produced on Volkswagen’s modular electric-drive platform, or MEB, to 1.2 million units over six years.

Volkswagen management board member Thomas Schmall said the deal would help the companies accelerate up their EV plans.

“Profitability and speed are now crucial for finally achieving the breakthrough of e-mobility in Europe,” Schmall said.

Ford Mustang Mach-E electric vehicle. Image credit: Ford
Ford’s Mustang Mach-E electric vehicle. Image credit: Ford


“We are tackling both together with Ford. Today’s agreement will further accelerate the electrification of the two companies.”

Ford’s first model to use the MEB platform is to be produced at Ford’s new state-of-the-art EV manufacturing facility in Cologne, starting next year.

Described as a “medium-sized crossover”, it is to be based on the Volkswagen ID 4 vehicle and will be positioned below the Ford Mustang Mach-E in Ford’s line-up.

The new second vehicle, to launch the following year, is described as a “sports crossover”, suggesting it may be a performance-oriented coupé derivative of the first, possibly based on VW’s ID 5.

“Let me assure you these products will absolutely look like Fords, drive like Fords and the experiences that we provide will give customers unique purchase and ownership experiences,” said Ford head of Europe Stuart Rowley.

Volkswagen's ID5 electric vehicle. Image credit: Volkswagen
Volkswagen’s ID 5 electric vehicle. Image credit: Volkswagen

Expanding line-up

He said the deal with VW was a “pivotal” moment in Ford’s history.

The new vehicle, about which Ford provided no further details, will bring the company’s planned Europe EV line-up to eight by 2024

In addition to the two VW-based vehicles and the Mustang Mach-E, Ford intends to launch an electric version of the Ford Puma, the Puma EV, based on Ford’s own platform.

Ford is also planning four electric commercial vehicles, beginning with the Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle beginning next year, followed in 2024 by smaller Transit Courier and Tourneo Courier vehicles.

Ford said it now expects to sell 600,000 EVs annually by 2026, as a result of which is investing an additional £1.5bn into developing the Cologne plant.

As part of its pans Ford has announced a joint venture with SK On and Koc Holding to establish a battery plant in Turkey, creating what it called “one of Europe’s largest commercial vehicle production facilities”.