Ford-VW alliance means more EVs for Europe, joint Argo AI investment
On Friday, Ford and Volkswagen made official news that first leaked last week. The pair are strengthening their alliance to work together on those hottest of emerging automotive technologies, electric vehicles and autonomous driving.
Equal partners in Argo AI
VW will become an equal partner in the self-driving startup Argo AI, putting in $1 billion in cash and another $1.6 billion in the form of Audi’s Autonomous Intelligent Driving spinoff, which will become Argo AI’s European center of operations. Over the next three years, VW will also buy an additional $500 million of Argo AI shares from Ford. (Ford will still complete its billion-dollar investment in Argo AI). Until now, Argo AI has operated as a de facto Ford subsidiary, but this investment makes VW an equal partner, with the remaining shares in the company reserved for employee compensation.
Argo AI’s technology will be incorporated into both Ford and VW vehicles as part of each company’s plans to offer geofenced driverless robotaxis or goods delivery services in the US and Europe. “While Ford and Volkswagen remain independent and fiercely competitive in the marketplace, teaming up and working with Argo AI on this important technology allows us to deliver unmatched capability, scale, and geographic reach,” said Ford President and CEO Jim Hackett in a statement.
Source: Ars Technica