Financing Implications Uncertain for Ford, Volkswagen Alliance | Auto Finance News | Auto Finance News

Financing Implications Uncertain for Ford, Volkswagen Alliance

A Volkswagen Tiguan hangs from a cradle on the assembly line at the Volkswagen AG (VW) factory in Wolfsburg. Photographer: Krisztian Bocsi/Bloomberg

The Volkswagen AG and Ford Motor Co. alliance will likely serve as an opportunity for the OEMs’ captives to collaborate on financing, though the timeline remains uncertain as the alliance is very new, analysts told Auto Finance News.

An OEM, its captive, and its dealer partners operate in an enterprise fashion, Jeremy Acevedo, Edmund’s manager of industry analysis, told AFN. “There will be a further collaboration that will trickle in,” Acevedo said. “The huge question is around autonomy and [electric vehicles], but also how the business is executed and what Volkswagen could tap into that Ford is doing in the [U.S.] in terms of their financing.”

While financing implications will take time, for now, the alliance is more focused on how the OEMs can achieve efficiency at a global level and use each other’s particular market strengths, Anil Goyal, executive vice president of operations at Black Book, told AFN.

“[The partnership] is about increasing profitability while establishing better marginal costs for production,” Goyal said.

 

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