The companies are poised to talk about extending the partnership at a July 11th meeting, according to one of the sources.

Neither VW nor Ford is willing to discuss the finer points of negotiations, although spokespeople for both said they were making progress.

If the agreement holds, this could have a far-reaching effect on both companies as well as the industry at large. VW would land one of its largest rivals as a customer, guaranteeing a major influence over the near future of EVs and autonomous driving. Ford, meanwhile, could fast track its electrification plans and focus more on the finer points of design than the basics.