Carmakers Ford and Volkswagen have signed agreements to expand their global alliance on a range of technology including electric and autonomous vehicles.

The companies think the alliance will “enhance ownership experiences” for current and future customers by “more rapidly innovating vehicle offerings, incorporating relevant new technologies, delivering better utility and offering more model choices”.

In the agreement, Ford will build a new electric vehicle for Europe based on Volkswagen’s Modular Electric Drive Toolkit and will both work with Argo AI to form “distinct, highly capable autonomous-vehicle businesses based on Argo AI’s self-driving technology”.

Last week, Volkswagen closed its previously announced investment in Argo AI, the Pittsburgh-based company in which Ford already had ownership and development interests.