Ford Motor (NYSE: F) is about to close a licensing deal with Volkswagen. It seeks to employ the company’s electric car technology in developing a new model to capture the European market.
The business agreement
The two companies have made great progress in talks so far and might hopefully close the deal in two weeks. Ford wants to embark on manufacturing activities in Cologne, Germany. It hopes that the adoption of the technology will enable it to come up with world-class autonomous cars that take over the markets. However, the company hasn’t yet disclosed details about how it will move about its manufacturing plans.
Ford also eyes the development of a light commercial vehicle in Romania, a deal set to cost about $300 million. It asks customers to expect an all-electric version.
The role of good leadership in business progress
The Ford CEO Jim Farley seems more focused on pushing the company’s electric vehicle undertakings a notch higher, and that has been quite observable over the recent years.
It was back in 2018 that Ford moved into a deal with Volkswagen. The company’s move was targeted towards the development of commercial vans, but it would later expand to include the manufacturing of electric cars. Ford focuses on self-driving technology and hopes to capture a significant portion of the global market shortly.
Ford says that its future lies in the electric vehicle space and that it will continue channeling its efforts and resources in that direction. The company’s showcased its determination when it committed a whopping $185 million to establish a battery research lab. It intends to rely on the Michigan lab to manufacture cells and batteries to help power its electric vehicles.
Ford has lately been showing remarkable business performance, according to analysts. It shocked everyone when it hit a $4.8 billion EBIT and still anticipates better things shortly.
The semi-conductors shortage continues to become a major stumbling block in electric vehicle manufacture. Experts continue to review the industry trends and supply chains. Ford and the rest intend to take battery sourcing with much seriousness as the world moves towards electric-powered vehicles.