Diess: VW, Ford in “Advanced” Talks About Alliance

December 04, 2018 at 5:35 PM

Volkswagen AG and Ford Motor Co. are in “quite advanced negotiations” about a global nonequity alliance that may include production of VW vehicles in Ford plants in the U.S., says CEO Herbert Diess.

“We need more capacity here in the U.S.,” Diess tells reporters in Washington, D.C. He adds that VW may build a second assembly plant of its own in the U.S. that would make Audi and VW brand vehicles.

The new factory would complement its facility in Chattanooga, Tenn., which builds VW Passat sedans and Atlas large SUVs. Diess anticipates a decision in early 2019 about a second plant.

Diess also tells reporters that VW and Ford intend to share vehicle platforms in Europe. He says the two carmakers expect to hold further discussions in January about their potential partnership.