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Ford and VW are considering an alliance to push EVs in Tesla-dominated market

Published

7 years ago

October 31, 2018

Simon Alvarez

As the auto market continues to get saturated by electric vehicles like the Tesla Model 3, legacy carmakers Volkswagen and Ford are considering an alliance to help bring compelling EVs to the market. If the partnership pushes through, Ford would be able to use Volkswagen’s MEB architecture for its own electric cars.

The possible partnership between the two auto titans was initially announced back in June, when the companies noted that they were considering a development and production alliance. During that time, Ford and VW noted that the partnership would involve the development of light commercial vehicles. In a statement to Automotive News on Tuesday, though, Volkswagen CFO Frank Witter stated that Volkswagen would be open to sharing its MEB electric vehicle architecture with the American automaker as well.

“Whether we might provide access to other brands outside of the VW Group is theoretically possible, but there is no decision,” he said.

Witter also asserted that Volkswagen is focused on making the necessary preparations for the rollout of its MEB-based vehicles, the first of which is planned to go into production late next year. The MEB-based cars would be manufactured in Volkswagen’s Zwickau, Germany plant, which is currently being converted into an electric car factory.

Volkswagen has grand plans for its electric car initiatives, with the company expecting to build 10 million vehicles using its MEB architecture. The German carmaker plans to start its EV program with the release of a car internally called the I.D. Neo, followed by the I.D. Crozz crossover for the US and China. Over the company’s four brands — VW, Skoda, Audi, and Seat — Volkswagen aims to release a total of 27 car models by the end of 2022.

In a recent interview, Volkswagen CEO Herbert Diess also expressed his confidence in the company’s electric car initiatives. Laying the gauntlet on first movers like Tesla, the VW CEO even declared that by 2020, Volkswagen would offering cars that rival Tesla’s vehicles spec-for-spec for half the price.

“We are coming on very strong now. We have invested 30 billion euros ($33.9 billion) in electromobility, we have already rededicated a plant in Zwickau, and we are building an electric vehicle plant in Shanghai. Truly highly attractive vehicles will begin arriving from Volkswagen as early as 2019. We will come in 2020 with vehicles that can do anything like Tesla and are cheaper by half,” Diess said.

Ultimately, a deal between Volkswagen and Ford would benefit the American carmaker. Ford, after all, has lagged mainly in the electric car industry. While the company still manufactures America’s best-selling vehicle — the Ford F-150 pickup truck — it has not produced compelling electric cars to date. Ford’s rivals in the legacy auto industry such as GM and Nissan, on the other hand, have developed capable EVs of their own, in the form of the Bolt EV and the Leaf. While the Bolt EV has mostly been eclipsed by the Model 3 amidst Tesla’s production ramp for the electric sedan, the Leaf continues to sell well in the US and abroad, and is one of the best entry-level EVs in the market.

That said, Ford appears to be taking a more assertive stance recently, as shown in an ad campaign taunting Silicon Valley-based carmakers like Tesla. In a TV spot featuring Hollywood A-lister Bryan Cranston, for example, Ford boldly declared that ultimately, “Talk doesn’t get things done. Building does.” The ad also teased several upcoming projects, including what appears to be a hybrid or electric-powered Mustang.

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Simon Alvarez

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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News

Tesla pushes crazy ‘Luxe’ incentive package on flagship Model S and X

Tesla is pushing more customers to the Model S and Model X with a new incentive package.

Published

1 hour ago

August 16, 2025

Joey Klender

Credit: Tesla

Tesla has pushed a crazy new incentive package, known as the “Luxe Package,” on the flagship Model S and Model X, along with a $10,000 price increase on each trim level.

The move aims to likely bolster margins for the company on the two cars while also giving those who choose to buy the Tesla lineup mainstays a variety of awesome advantages, including Free Supercharging, Full Self-Driving, and other add-ons.

Tesla is offering a crazy Supercharging incentive on its two ‘sentimental’ vehicles

Last night, Tesla launched the “Luxe Package” for the Model S and Model X, which includes the following four add-ons:

Full Self-Driving (Supervised) – Your car will be able to drive itself almost anywhere with minimal driver intervention
Four-Year Premium Service – Wheel and Tire Protection, Windshield Protection, and Recommended Maintenance
Supercharging – Charge for free at 70,000+ Superchargers worldwide
Premium Connectivity – Listen to music, stream movies, monitor live traffic, and more – no Wi-Fi needed

Full Self-Driving is priced at $8,000. Free Supercharging for the life of the car is between $10,000 and $15,000 over the life of the vehicle, although Tesla has valued it at $5,000 in recent promotions.

Free Premium Connectivity is roughly $1,000, and the four-year tire, wheel, windshield, and maintenance plan is about $3,200.

🚨 Tesla increased the price of both the Model S and Model X by $10,000, but both vehicles now include the “Luxe Package,” which includes:
-Full Self-Driving
-Four years of included maintenance, tire and wheel repairs, and windshield repairs/replacements
-Free lifetime… pic.twitter.com/LKv7rXruml
— TESLARATI (@Teslarati) August 16, 2025

In all, the value is over $25,000, but this is loosely based on usage.

The Model S and Model X are low contributors to Tesla’s overall sales figures, as they make up less than five percent of sales from a quarterly perspective and have for some time.

As they are certainly the luxury choices in Tesla’s lineup, the Model 3 and Model Y are the bigger focus for the company, as a significantly larger portion of the company’s sales is made up of those vehicles.

The Luxe Package is an especially good idea for those who drive high-mileage and plan to use the Model S or Model X for commuting or long drives. The free Supercharging makes the deal worth it on its own.

As for the price bumps, each of the vehicles are now priced as follows:

Model S All-Wheel-Drive: $94,990
Model S Plaid: $109,990
Model X All-Wheel-Drive: $99,990
Model X Plaid: $114,990

News

Tesla Roadster could have a formidable competitor with BYD’s 3000-HP supercar

The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate, which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.

Published

3 hours ago

August 16, 2025

Joey Klender

The Tesla Roadster is on the way, and yes, we know we’ve heard that for quite a few years. But when it comes, it might have a formidable competitor, and it might come from no one other than Chinese rival BYD.

BYD’s Yangwang U9 Track Edition is a new configuration of the U9 supercar that hit the Chinese Ministry of Information Technology (MIIT) database recently.

The vehicle was first spotted on the MIIT database by CarNewsChina. It will have a quad-motor powertrain, each dedicated to one wheel. Instead of the 1,287 horsepower that comes with the standard U9 configuration, the Track Edition will have 2,977.

There are only two cars that even come close in terms of horsepower: the Lotus Evija with 1,972 and the Rimac Nevera at 1,914 horsepower. The Tesla Roadster is expected to have somewhere around 1,000 horsepower.

The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate (without the SpaceX package, which brings the projection to 1.1 seconds), which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.

The Roadster also beats the U9 Track Edition in projected top speed and range. The Roadster could top out at over 250 MPH, compared to the 217 conservative projection for the U9 Track Edition.

Range on the Roadster is 620 miles, beating 280 miles for the BYD.

: Credit: BYD

: Credit: BYD

The U9 Track Edition will also have some additional features compared to its base model. These include some aerodynamic additions, like a carbon fiber rear wing, diffuser, and an adjustable front splitter and adjustable rear wing.

The latter two are optional, but if you have enough scratch to drop on this car, you’re probably adding those two features as well.

We hope that both the Roadster and U9 Track Edition will hit a drag strip, road course, or even a superspeedway for some racing. It would truly be something for EV fans to drool over.

News

Tesla is breaking even its own rules to cap off an intense Q3

Tesla is pulling out all the stops to have a strong Q3 as the EV tax credit will phase out.

Published

6 hours ago

August 16, 2025

Joey Klender

Credit: MarcoRP | X

Tesla is breaking its own rules by advertising on various platforms in an effort to sell as many cars as possible before the end of the $7,500 electric vehicle tax credit.

Tesla has had a very polarizing perspective on advertising. Over the years, it has taken on different attitudes toward spending any money on marketing. It has instead put those dollars into research and development to make its vehicles more advanced.

Back in 2019, Tesla CEO Elon Musk talked about the company advertising its vehicles and energy products:

Tesla does not advertise or pay for endorsements. Instead, we use that money to make the product great. https://t.co/SsrfOq1Xyc
— Elon Musk (@elonmusk) May 19, 2019

In 2021, in response to analyst Gary Black, who has pushed for Tesla to have a PR or marketing department, Musk said:

Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product.
I trust the people.
— Elon Musk (@elonmusk) April 27, 2021

However, this did not hold as Tesla’s strategy for the long haul. While Musk did resist advertising for a long time, Tesla started placing ads on platforms like X, Google, and YouTube several years back. It’s pretty rare that Tesla pushes these ads, however.

Tesla launches advertising on X in the U.S., expanding ‘small scale’ strategy outlined by Musk

The company’s stance on setting aside capital for advertising seems to be circumstantial. Right now, it is working to sell as many vehicles as it can before the tax credit comes to a close.

As a result, it is pushing some ads on YouTube:

$TSLA is starting to advertise on YouTube. pic.twitter.com/1cwO2KNzJm
— Cole Grinde (@GrindeOptions) August 15, 2025

It’s a move that makes sense considering the timing. With just six weeks roughly left in the quarter, Tesla is going to work tirelessly to push as many cars into customer hands as possible. It will use every ounce of effort to get its products on people’s screens.