Volkswagen AG and Ford Motor Company Launch Global Alliance

Volkswagen AG and Ford Motor Company today announced the first formal
agreements in a broad alliance that positions the companies to boost
competitiveness and better serve customers in an era of rapid change in
the industry.

Volkswagen CEO Dr. Herbert Diess and Ford CEO Jim Hackett confirmed that
the companies intend to develop commercial vans and medium-sized pickups
for global markets beginning as early as 2022. The alliance will drive
significant scale and efficiencies and enable both companies to share
investments in vehicle architectures that deliver distinct capabilities
and technologies.

The companies estimate the commercial van and pickup cooperation will
yield improved annual pre-tax operating results, starting in 2023.

In addition, Volkswagen and Ford have signed a memorandum of
understanding to investigate collaboration on autonomous vehicles,
mobility services and electric vehicles and have started to explore
opportunities. Both companies also said they were open to considering
additional vehicle programs in the future. The teams will continue
working through details in the coming months.

“Over time, this alliance will help both companies create value and meet
the needs of our customers and society,” Hackett said. “It will not only
drive significant efficiencies and help both companies improve their
fitness, but also gives us the opportunity to collaborate on shaping the
next era of mobility.”

Diess added: “Volkswagen and Ford will harness our collective resources,
innovation capabilities and complementary market positions to even
better serve millions of customers around the world. At the same time,
the alliance will be a cornerstone for our drive to improve
competitiveness.”

The alliance, which does not entail cross-ownership between the two
companies, will be governed by a joint committee. This committee will be
led by Hackett and Diess and will include senior executives from both
companies.

Commercial van and pickup collaboration

Ford and Volkswagen both have strong commercial van and pickup
businesses around the globe, with popular nameplates such as the Ford
Transit family and Ranger as well as the Volkswagen Transporter, Caddy
and Amarok.

The companies’ collective light commercial vehicle volumes from 2018
totaled approximately 1.2 million units globally, which could represent
the industry’s highest-volume collaboration as production scales.

Demand for both medium pickups and commercial vans is expected to grow
globally in the next five years. The alliance will enable the companies
to share development costs, leverage their respective manufacturing
capacity, boost the capability and competitiveness of their vehicles and
deliver cost efficiencies, while maintaining distinct brand
characteristics.

Through the alliance, Ford will engineer and build medium-sized pickups
for both companies which are expected to go to market as early as 2022.
For both parties, Ford intends to engineer and build larger commercial
vans for European customers, and Volkswagen intends to develop and build
a city van.

About Volkswagen Group

The Volkswagen Group with its headquarters in Wolfsburg is one of the
world’s leading automobile manufacturers and the largest carmaker in
Europe. The product spectrum ranges from motorcycles to small cars and
luxury vehicles. In the commercial vehicle sector, the products include
ranges from pick-ups, buses and heavy trucks. The Group operates 120
production plants in 20 European countries and a further 11 countries in
the Americas, Asia and Africa. Every weekday, around 642,292 employees
worldwide produce nearly 44,170 vehicles, and work in vehicle-related
services or other fields of business. www.volkswagenag.com.

About Ford Motor Company

Ford Motor Company is a global company based in Dearborn, Michigan.
The company designs, manufactures, markets and services a full line of
Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury
vehicles, provides financial services through Ford Motor Credit Company
and is pursuing leadership positions in electrification, autonomous
vehicles and mobility solutions. Ford employs approximately 200,000
people worldwide. For more information regarding Ford, its products and
Ford Motor Credit Company, please visit www.corporate.ford.com.

Forward Looking Statements

Statements included herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are based on
expectations, forecasts, and assumptions and involve a number of risks,
uncertainties, and other factors that could cause actual results to
differ materially from those stated. Forward-looking statements
speak only as of the date of their initial issuance.

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