Ford and Volkswagen have signed an agreement that will see the pair share technology to build three commercial vehicles.

The agreement will also see Ford build an electric vehicle for Europe based on Volkswagen’s Modular Electric Drive (MEB) toolkit.

Plans were first announced last July but have now been ratified, with the pair hoping the partnership will enhance the ownership experience for customers by allowing them to innovate more quickly, offer more model choices and integrate better technology.

The move will see the next Volkswagen Amarok based on the Ford Ranger and go on sale in 2022. A city delivery van based on the Volkswagen Caddy could be on sale as early as 2021, while a one-tonne cargo van built by Ford will be added to the line-up later.

Ford will also use Volkswagen’s new electric vehicle platform, called MEB, to build a ‘highly differentiated’ electric vehicle for sale in Europe by 2023.

Volkswagen Group CEO Herbert Diess, said: “In light of the COVID-19 pandemic and its impacts on the global economy, more than ever it is vital to set up resilient alliances between strong companies.

“This collaboration will efficiently drive down development costs, allowing broader global distribution of electric and commercial vehicles, and enhance the positions of both companies.”

Ford CEO Jim Hackett, said: “This alliance comes at a time of tremendous enthusiasm about the intersection of increasingly intelligent, connected vehicles in an ever-smarter world. 

“This creates a huge opportunity to innovate and solve many of the world’s transportation challenges and deliver extraordinary benefits to customers – even as companies need to be selective about how they use their cash.”

The companies believe a combined eight million vehicles could be produced as part of the partnership over the life cycle of the vehicles.