Volkswagen to Invest in Ford's Self-Driving Car Unit
July 12 2019 - 4:16AM
Dow Jones News
By WSJ City
Volkswagen has agreed to invest around $2.6bn in Ford's
autonomous-vehicle partner, Argo AI, in a deal that values the
startup at $7bn, according to people familiar with the matter.
KEY FACTS
--- Ford has been the majority shareholder of Argo since early
2017, when it agreed to invest $1bn.
--- Argo would develop self-driving technology for VW and
eventually supply systems for commercial use.
--- The investment in Argo includes $1bn in capital funding.
--- It also includes the value of VW's 200-person
autonomous-driving division, which the companies placed at
$1.6bn.
Why This Matters
Major auto makers have been consolidating efforts as they race
to develop driverless and electric cars and build business models
around them. General Motors' San Francisco-based Cruise subsidiary
is developing an autonomous-driving system with Honda, which has
agreed to invest $2.75bn in Cruise.
Alphabet's Waymo unit, considered by many analysts to be
furthest along in technical development, is working with several
big auto makers, including Fiat Chrysler, Renault and its alliance
partner, Nissan.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
July 12, 2019 04:01 ET (08:01 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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