HAMBURG (REUTERS) - Carmaker Volkswagen will inject US$2.6 billion into Ford’s self-driving unit Argo AI at an overall valuation of US$7 billion in the deal, a source close to the matter said yesterday.
Volkswagen will contribute US$1 billion in capital and US$1.6 in own business activities, and VW and Ford will be equal stakeholders of the venture, the source said.
Ford and VW said on Thursday they are expanding their global alliance and that they would announce details on a technology-sharing agreement.
The collaboration on Argo, the Pittsburgh start-up that has spearheaded Ford’s self-driving activities since 2017, could help reduce engineering and development costs.
It could also accelerate the deployment timetables of both, which have said they plan to put autonomous vehicles into operation in 2021.