[Updated] Ford, VW Autonomous Vehicle Partnership Potentially Valued at $4B
Photo: Ford Motor Company
2/27 Update: Ford has issued the following report to the Wall Street Journal story that puts Volkswagen’s investment in Argo AI at $1.7 billion:
“Our talks with Volkswagen continue. Discussions have been productive across a number of areas. We’ll share updates as details become more firm.”
Ford Motor Company and Volkswagen AG announced plans for a strategic alliance in January, and in so doing revealed the signing of a memorandum of understanding that could lead to the joint development of autonomous vehicle technology. According to a report this month, continued discussions relative to an AV partnership put the approximate value of the venture at $4 billion.
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According to Bloomberg, a source close to the discussions revealed that a Ford-VW autonomous driving partnership would entail Volkswagen investing in Argo AI, Ford’s autonomous vehicle startup, and the creation of an ostensible joint venture. Bloomberg notes that VW CEO Dr. Herbert Diess has stated the intention for Volkswagen to own the software that controls self-driving vehicles, and the continued talks between the two companies will likely center around addressing mutual needs such as these.
The partnership between the two global automotive giants would likely make the combined effort the leader in the self-driving vehicle marketplace worldwide. Ford’s larger presence in North America and VW’s larger presence in Europe would enable the two companies to surpass AV efforts from Alphabet Inc. and General Motors.
In 2017, Ford invested $1 billion in Argo AI, a startup founded by CEO Bryan Salesky, formerly of Alphabet Inc., and COO Peter Rander, formerly of Uber. In January, Argo AI was granted a permit by the California Department of Motor Vehicles to conduct public autonomous vehicle testing in California, expanding its testing and development network to five locations in the United States and pushing Ford closer to its 2021 goal for AV commercialization.
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News Source: Bloomberg
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