The global alliance between VW and Ford is expanding as the Volkswagen AG Supervisory Board approved further contracts under the cooperation announced last year.

As a first step, the two automotive giants plan to realize three projects in the areas of electrification and commercial vehicles. As far as electrification is concerned, Volkswagen’s Modular Electric Toolkit (MEB) will be used by Ford for an electric vehicle targeting the European market. No details have been released about said model, but Ford previously said it would launch it in 2023.

In the area of commercial vehicles, Ford will develop a midsize pickup that will also be adapted by Volkswagen Commercial Vehicles in selected markets. The project is the next-generation Ford Ranger on which VW will base its upcoming Amarok.

Read Also: VW Teases Next Ford Ranger-Based 2022 Amarok Pickup Truck

Official teaser rendering of the 2022 VW Amarok based on the next-generation Ford Ranger

Finally, the automakers will implement two further vehicle projects. Volkswagen Commercial Vehicles will develop of a city delivery van that will also be used by Ford, while the U.S. automaker will design a van in the one-ton loader segment that VW will also add to its lineup.

No further details are available but the city delivery van could be the recently-unveiled 2021 VW Caddy while the one-ton van could be the next-generation Ford Transit Custom. VW and Ford said additional projects may follow, as well as the investment in Argo AI, the autonomous vehicle platform company.

Through their cooperation, both manufacturers plan to realize “significant synergy effects from shared development costs as well as production synergies.” Unlike the Renault-Nissan-Mitsubishi Alliance, the Volkswagen-Ford global alliance does not involve cross-ownership between the companies.