Commercial vehicles are in the firing line for the pairing

Volkswagen AG and Ford Motor Company have signed a memorandum of understanding ahead of a possible 'strategic alliance', which could see the two automotive giants team up to develop commercial vehicles.

The pairing wouldn't involve any equity sharing or "cross-ownership stakes", ruling out the possibility of a massive automotive alliance in a similar vein to Renault-Nissan-Mitsubishi or Peugeot Citroen (PSA).

According to the Volkswagen release, the companies are looking at synergies in a number of areas, including developing a range of commercial vehicles together.

"Ford is committed to improving our fitness as a business and leveraging adaptive business models – which include working with partners to improve our effectiveness and efficiency,” said Jim Farley, Ford president of global markets.

“This potential alliance with the Volkswagen Group is another example of how we can become more fit as a business, while creating a winning global product portfolio and extending our capabilities."