U.S. auto maker Ford Motor Co. and its German counterpart, Volkswagen AG (VW), announced Tuesday they will join forces to build pickup trucks and vans, and develop electric vehicles. The first batch of deliveries are expected in 2022.

The collaboration came as a decline in Ford's market share in Europe forced the company to cut thousands of jobs on the continent, amid VW's resolve to further tap into the North American market. The alliance is also an effort to salvage a downward sliding and rapidly transitioning auto industry as a whole.

"The companies estimate the commercial van and pickup cooperation will yield improved annual pre-tax operating results, starting in 2023," read a joint press release issued by the companies as they made the announcement via a conference call during the ongoing North America International Auto Show (NAIAS) in Detroit, the U.S. state of Michigan.

According to the plan, Ford will make medium-sized pickup trucks for both companies while charting out development and production of larger vans for the European market. VW, for its part, will design and manufacture a new city van model.

The collaboration doesn't involve either side taking each other's shares, the press release said.

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

"Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions," VW Chief Executive Officer Herbert Diess said.

The auto manufacturers also signed a memorandum of understanding eyeing cooperation on driverless cars as well as electric vehicles. "Both companies also said they were open to considering additional vehicle programs in the future," the press release said.

No specifics concerning those aspects are available yet, as the pair only declared that works related to the details will continue in the coming months.