Discussions are ongoing, and sources with knowledge of the talks caution that the sides could still decide to postpone an announcement. Ford and VW declined to comment on the possibility of a Tuesday announcement, which was first reported by Reuters.
Meanwhile, Volkswagen’s parent company board will deliberate ahead of next week’s Detroit auto show on green-lighting a broader alliance with Ford, people familiar with the matter told Bloomberg. The talks with Ford are progressing and VW’s board is scheduled to discuss the matter Friday, said the people, who asked not to be identified because the details aren’t final.
If the companies go forward with that plan, auto show organizers have reserved an hourlong slot for them Tuesday morning, labeled on the official schedule only as a “pending industry announcement.” Representatives for the Detroit Auto Dealers Association, which runs the show, declined to discuss that event — slated for the convention center’s main stage from 8:30 a.m. to 9:30 a.m. Tuesday morning — or say which company requested that time slot. The event has been listed on the schedule since it was released Dec. 14.
Details of the proposed tie-up are unclear, but the automakers are expected to partner on a number of fronts to reduce costs and streamline operations. Both sides have said any potential deal would not involve a merger.
Jim Farley, Ford’s president of global markets, Wednesday night declined to confirm the two sides were planning a Tuesday announcement, but said Ford and VW were “far along, very deep” in discussions.
“We’re making really good progress over a lot of different projects, each over a different timeline,” he told reporters.
He noted both companies’ history of working together on different initiatives in the past.
“They’re a good match from a geographic standpoint,” he said. “There’s a lot of comfort, I would say, because we both have to improve our business results, we know each other, and the leadership of both companies really feel we really enjoy getting to know each other.”
The automakers in June signed a memorandum of understanding to explore a strategic alliance across a number of areas, including joint development of commercial vehicles.
The two sides are discussing partnering on autonomous vehicles and on midsize pickups.
Ford reintroduced the Ranger to the U.S. this month, and VW is considering basing its next-generation Amarok off the Ranger, VW CEO Herbert Diess has said.
Diess also said that the German automaker wants to use some U.S. Ford plants with excess capacity to build VW vehicles, although Ford has few options.
Executive Chairman Bill Ford last month said the talks were going “really well,” adding “the culture fit is good.”