FORD ALLIANCES AND NETWORKS

As a global company producing many car models (SUV, trucks, vans, electric vehicles, etc.) it is
neccessary to enter into strategic alliances to compete with a strong competition on a global market.
An examples why companies are “forced“ to find partners can be different such as cutting costs or
developing new technologies (electric cars, softwares for new cars, etc.).

In our exmple, the Ford Motor Company made several alliances, acquisitions and joint ventures. The
most important car alliance that Ford made is with Volkswagen Group in June, 2018. Two giants are
working together on mid-size pickup trucks and commercial vehicles, while they have huge plans in
developing/production of electric and self-driving vehicles (https://www.reuters.com/article/us-
volkswagen-ford-alliance-electric/volkswagen-zooms-ahead-in-extension-of-alliance-with-ford-to-
electric-automated-cars-idUSKCN1U71IL). In such a way, both companies are saving a lot of many in
development/manufacturing of those vehicles. Also, VW Group promised to invest $2,6 billion in
Argo AI (Ford’s self-driving cars venture) and buy $500 million Argo AI shares from Ford, so that VW
and Ford hold 80% of Argo’s shares (40% each) and the rest 20% is Argos. Further, Ford will produce
its electric cars in Europe using VW’s MEB electric vehicle platform. VW prepared $7 billion for the
development of MEB platform which will gain approximately $20 billion in revenue while shared with
Ford (https://www.reuters.com/article/us-volkswagen-ford-alliance-electric/volkswagen-zooms-
ahead-in-extension-of-alliance-with-ford-to-electric-automated-cars-idUSKCN1U71IL).

Besides the alliance with VW Group, Ford signed a 3-year long alliance (with the possibility to extend)
with Mahindra & Mahindra, an Indian company. They will work together in projects connected with
car electrification, connected vehicle, new mobility trends as helping Ford strengthen its position in
India and vice versa (helping M&M to expand on global market)
(https://economictimes.indiatimes.com/industry/mm-enters-into-strategic-alliance-with-ford-to-
explore-collaboration-on-electric-vehicles/articleshow/60731811.cms).

To more diversify its vehicle offer, Ford bought Brazilian SUV manufacturer “Troller”. This SUV model
with its characteristics is similar to Jeep Wrangler, presenting a type of vehicle models that Ford has
never produce (https://www.cnet.com/roadshow/news/troller-t4-trail-ford-bronco-suv/). Also, Ford
owns 31,5% of Jiangling Motors Corp, a Chinese car manufacturer company (produced Ford vans,
JMC trucks and SUVs) (https://www.reuters.com/article/us-ford-jiangling-stake/ford-raises-stake-in-
chinas-jiangling-motors-idUSBRE93G05320130417).

Furthermore, Ford made several strategic joint-ventures across the globe (China – “Changan Ford”,
Taiwan – “Ford Lio Ho”, Thailand – “AutoAlliance Thailand”, Turkey – “Ford Otosan” and Russia –
“Ford Sollers”). Through its joint-ventures, Ford is producing cars, invests in R&D centers, service its
customers, researches car’s electrification, etc. This ventures enable Ford to save costs, which would
be higher in the U.S. and also eases Ford to enter this markets and gain as greater market share as
possible (https://www.autonews.com/china/ford-opens-rd-center-troubled-changan-joint-venture).