Ford Motor Co. /zigman2/quotes/208911460/composite F -1.01% and Volkswagen AG /zigman2/quotes/200781593/composite VLKAF -2.34% /zigman2/quotes/206919008/delayed XE:VOW -1.17% announced Wednesday agreements for projects to make electric vehicles, commercial vehicles and for autonomous driving vehicles. Although the agreement does not involve cross-ownership between the automakers, the companies expect "significant efficiencies" will be created for both companies. As part of the agreement, Ford will build new electric vehicles for Europe starting in 2023, based on Volkswagen's modular electric drive toolkit. For commercial vehicles, Volkswagen will build a city van, a one-ton cargo van engineered by Ford and a medium pickup truck build on the Ford Ranger platform, starting in 2022. And following Volkswagen's investment in Argo AI last week, the companies will work with Argo AI to develop autonomous vehicles at scale. Ford's stock rose 0.7% in premarket trading. Year to date, Ford shares have declined 22.2% through Tuesday and the U.S.-listed shares of Volkswagen have dropped 8.1%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.06% has eased 0.7%.