An Argo AI self-driving car image: Ford

Volkswagen has announced that it’ll invest $2.6 billion in Argo AI, Ford’s self-driving unit. The investment is part of an alliance between the two automakers to collaborate on electric vehicle and autonomous driving tech. The $2.6 billion includes a commitment of $1 billion in funding and the transfer of Volkswagen’s $1.6 billion valued self-driving unit to Argo AI. More than 200 employees from Volkswagen’s own self-driving unit will join Argo AI as part of the transaction.

Volkswagen will also purchase $500 million worth of Argo AI shares over a three-year period from majority owner Ford. Ford too will invest the remaining $600 million of a previously announced $1 billion commitment to Argo AI. With this investment, Argo AI will be valued at more than $7 billion.

(Starting from left) Ford CEO Jim Hackett, Argo AI CEO Brian Salesky and Volkswagen CEO Herbert Diess image: Ford

Argo’s team will be boosted to more than 700 employees from a current 500 with the addition of Volkswagen’s self-driving unit. Argo is also getting a new European HQ from the deal. With the new HQ addition, Argo now operates out of five engineering centers [the remaining four located in Dearborn, Michigan.; Cranbury, New Jersey; Palo Alto, California; and Pittsburgh, Pennsylvania].

In addition to its engineering centers, Argo also maintains testing operations in Miami and Washington, D.C.

Share this...

Facebook

Pinterest

Twitter

Linkedin

Whatsapp

Email

Print