Volkswagen has announced that the company will be joining Ford in investing in Pittsburg-based startup Argo AI, the autonomous vehicle development company.
Argo AI’s platform apparently has the largest geographic deployment potential of any autonomous driving technology to date. Volkswagen and Ford independently will integrate Argo AI’s SDS (self-driving system) into purpose-built vehicles to support both goods and people transport initiatives of both companies. Argo AI’s focus remains on delivering an SAE Level 4-capable SDS to be applied for ride sharing and goods delivery services in dense urban areas.
Volkswagen will invest $2.6 billion in Argo AI by committing $1 billion in funding and also contributing its $1.6 billion Autonomous Intelligent Driving (AID) company, which includes more than 200 employees. As part of the transaction, VW will also purchase Argo AI shares from Ford for $500 million over three years. If things go as planned, Argo AI’s valuation totals more than $7 billion.
In addition, Ford will use Volkswagen’s Modular Electric Toolkit or MEB platform to deliver a new electric vehicle for Europe in 2023. VW will supply MEB parts and components as part of the collaboration. Ford expects to deliver more than 600,000 vehicles using the MEB architecture over 6 years, with a second new Ford model for European customers under discussion.
Both companies also announced that they’re on track in their previously announced plan of delivering commercial vans and medium pickups in key global markets.
In featured photo: Ford President and CEO Jim Hackett, Argo AI CEO Bryan Salesky, and Volkswagen CEO Dr. Herbert Diess.
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