Volkswagen discusses using Ford's US plants to produce its own EVs

U.S. auto manufacturer Ford is talking with Volkswagen in Washington, DC about the German auto maker possibly using Ford plants to make electric vehicles and sharing its platform with Ford in the U.S.

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EVs to be manufactured may include microbuses

Back in June the two companies announced that they were planning an alliance to cooperate on some future products. Diess said that the alliance would not include equity stakes for the automakers. Volkswagen chief executive officer Herbert Deiss said recently that he is looking for a place to build the company's electric cars in North America.

EV models include classic microbuses

Although Diess did not say what exact models may be made in the U.S., they may include the I.D. Crozz and the I.D. Buzz.

The I.D. Crozz is expected to go on sale in 2021, and the I.D. Buzz in 2022. The Buzz is a remake of the classic microbus. However other possibilities include pickup trucks shown at recent auto shows that are sold worldwide.

Diess said: “We need additional capacity here in the United States, we need an additional car plant for VW and Audi combined.” Audi, which is now part of the Volkswagen group. is also planning to sell vehicles in the U.S. including several models that will be based on VW's MEB platform designed to produce more affordable models.

A recent article notes: "Volkswagen is expecting to launch at least three new all-electric vehicles in the U.S. in the next five years.The first will be the 2020 introduction of the ID, a unique electric-only that would replace the e-Golf; the much-anticipated, all-electric ID Buzz, a remake on the counterculture-icon microbus, due in 2022; and the I.D. Crozz, a rugged-hatchback spinoff. A flagship sedan, previewed by last year’s I.D. Vizzion concept, could also arrive around 2022."

Ford could use VW's EV architecture

If Ford and VW come to an agreement on sharing the development of EVs, both companies could use VW's EV architecture. VW is planning large investments in EVs up to $50 billion.

VW hopes that by just 2025 fully a quarter of all the groups' vehicles will be solely powered by electricity. They expect to have some 50 different fully battery powered vehicles plus 30 plug-in hybrids.

Using Ford plants would save VW money

Although there are some reports and rumors about VW expanding its existing plant in Chattanooga, Tennessee or even building a new plant, sharing facilities with Ford could achieve the aims of VW without the company having to invest a great deal of money in a new or expanded facility. It would help localize production as well and help shield it from currency fluctuations or trade wars.

Neither company has released any specifics about their deal, and both said they were still in the process of working out details.

Previously published in Digita Journal

Canadian and US auto sales increase in 2012

US auto sales for 2012 are predicted to rise by 13% or 14.5 million new vehicles This is the best year since 2007. Canadian sales also rose in 2012.

Many people put off buying cars during the recession and their aging vehicles need to be replaced. As credit is cheap and the economy slowly recovers, sales are increasing. In December this year the big 3 American automakers saw a 5% increase in sales, a bit better than analysts had predicted. Compared with the previous December, GM sales increased by 5%, while Ford sales increased just 2%. The winner was Chrysler with a sales increase of 10%. Toyota increased sales by 8%. For the year, Toyota had a large increase of about 27% compared to just 3.7% for GM, 4.7% for Ford, and 21% for Chrysler. Consulting firm Polk, expects sales to continue increasing in 2013 to 15.3 million vehicles or a nearly 7% increase. Jonathan Browning, who is with Volkswagen in the US, warned however:

"It would have been nice if all the open questions had been resolved in the 'fiscal cliff' discussion over the holiday, but clearly they weren't, and that does extend this period of uncertainty from a consumer point of view."

In Canada, Ford Motor Co. of Canada was the top seller for the third straight year. Chrysler, however, with many fuel-efficient cars was able to become number two, replacing GM. Even though it is number one, Ford sold only 90 more vehicles last year than the year before. In December, sales actually slipped 13 % from 2011. Chrysler reported its sales rose 8% putting it in second place. Reid Bigland, CEO, of Chrysler Canada said:

"Our investment in fuel-efficient new vehicles and power trains has propelled us to be the number two seller.".

For the year, Chrysler car sales rose 33%. The Chrysler group is controlled by Fiat of Italy. Bigland predicted another good year for Chrysler in 2013.