In an industry that is so Brand orientated like the retail motor trade, where brand identity is not only so vehemently pursued but defended, it is rare that inter-brand breeding occurs.

Although examples exist; most recently Mazda and FCA joined forces producing the FIAT 124; although like many animal hybrids,  the Zorse, Zedonk, Mule and Hinny, they tend not to reproduce or have particularly long lifespans, so proved when FIAT pulled the 124 from sale in the UK with no explanation on Monday (07.01.18) a little over two years from launch.

However, when two well-recognised Auto Brands, who share no usual (financial or historic) bonds or ties, join forces, it’s usually for cost-cutting purposes. We saw this with Renault / Vauxhall on commercial vehicles in the early 2000s, and we see it again now with news today that Ford & VW are to join forces to co-op on advancing both brands’ understanding and use of electric and autonomous vehicles.

This momentous news from Europe and America’s leading brands is nothing short of astounding, however in the same week as Ford announced European job cuts, as a cost-saving exercise, and following some pretty tumultuous years for VW group;  it is, perhaps, not a surprise.

Let’s be clear this is not a merger, or even a precursor to a merger, although often predicted that massive brand mergers are on the industry’s tarot cards, these two distinct and wholly different companies are not set to form F-VAG. This is simply a deal between two cross-continent rivals to make their own lives easier.

 After all Ford are strong on commercial vehicles, where VW (perhaps) struggle and Ford are playing catch-up on EV, in which, perhaps, VW have investment and technology already in place and working, buoyed no doubt by VW announcing in 2018 it would spend  €30bn on its EV efforts in the next 50 years. This move will allow Ford to bypass the huge deficit in its own electric vehicle development, allowing it to spend its money in other areas such as autonomous technology. Ford has already pledged to spend $11bn on electric vehicles, which now can be deployed elsewhere no doubt.

It was predicted less than 20 years ago, that by 2100 there will only be four companies making cars, although predictions differed as to the names of the Musketeers, this could be the start of the end.

With AI, Self-driving cars and EV changing the landscape of the Automotive Industry, is it actually so crazy an idea to say that in little more than 80 years there will only be four makers?

Collaboration keeps costs down, allows for cheaper testing and research and ultimately quicker-to-market products, but with each €euro, £sterling or $US spent a little of the brand is diluted and that for many is the thin end of the wedge, for most though it is simply called progression.

What are your thoughts?