Volkswagen Group and Ford have confirmed that a new alliance will see them working together on LCV development.

The alliance – which does not involve any cross-ownership between the two firms – is intended to produce vans and medium-sized pick-ups for global markets beginning in 2022.

The firms say demand for these vehicles is expected to grow globally in the next five years, and they intend to build on the strong position they have with the Ford Transit family and Raptor, and the VW Transporter, Caddy and Amarok.

The alliance will see Ford engineer and build medium-sized pick-ups and larger European vans for both companies, while VW intends to develop and build a city van.

In addition to the LCV alliance, VW and Ford have also signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles, and say they are open to considering additional vehicle programs in the future.

Ford CEO Jim Hackett said: “Over time, this alliance will help both companies create value and meet the needs of our customers and society.

“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.

VW CEO Herbert Diess said: “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.”