Why it matters: A source familiar with the matter described the partnership as an extension of an existing agreement to work together on commercial vehicles. Further details could be hashed out at a meeting next week, we're told.

Ford and Volkswagen have agreed to share autonomous and electric car technologies with each other according to a report from Reuters published on Friday.

As Engadget correctly points out, a partnership of this nature could have a huge impact on each company’s ambitions and the automotive industry in general. For Ford, it could fast track electrification plans and for Volkswagen, it would allow them to transform one of their biggest rivals into a customer.

Drivers (consumers) may see a reduction in competition and options but odds are, it’ll speed up advancements in the industry and make tech more affordable.

A spokesperson for Ford said their talks with Volkswagen continue, adding that discussions have been productive across a number of areas. More details will be shared when they’re firm, the spokesperson said. Volkswagen’s representative declined to comment on specific details of the potential alliance but did note that talks with Ford are going well thus far.

A separate source told Reuters that Volkswagen’s supervisory board is planning to discuss deepening its alliance with Ford at a meeting on July 11.

Masthead credit: Electric car at charging station by MDOGAN