Ford and VW Argo AI Alliance Could Redraw Self-Driving Sector: An expanded alliance between Ford Motor Co. and Volkswagen AG, the German Auto Maker. Volkswagen to Invest in Ford’s Self-Driving Car Unit.
Reports says that Ford and Volkswagen has extend collaboration to Electric, Self-Driving Cars. Voklswagen group wants to invest a about $2.6 billion in Argo AI (Artificil Intelligence), as partnership costs for electric and self-driving vehicles. Previously, there has been raised Ethical Questions about Self Driving Cars in USA and the world at large.
German auto Company to invest around $2.6 billion in Argo Artificial Intelligence (AI)
According to people familiar with autonomous vehicle matter, news from today shows that Volkswagen AG has finally agreed to invest about $2.6 billion into driverless cars. The investment was directed to popular Ford Motor Company’s self-driving vehicle partner, Argo Artificial Intelligence (AI), in a good business deal that is said to be valued at $7 billion startup.
Since early 2017, Ford has been the one of the majority shareholder of Pittsburgh-based Argo, when it agreed to invest one billion dollar only.
An announcement is to be made on Friday, under the agreement with Volkswagen, that Argo would develop self-driving technology for Volkswagen. After production, they will finally supply the tech systems for commercial usage while continuing its development work with Ford, the source said. Meanwhile, news has it that Lidar Laser Sensor Could Make Self-Driving Cars a Reality in Auto Industry. Is this true?
As a matter of fact, the $2.6 billion investment in Argo AI also take account of $1 billion in capital funding as well as the value of Volkswagen’s two hundred-person self-driving division in Munich, which the organisations engaged at 1.6 billion US dollars.
The source also said that the group, known as Autonomous Intelligent Driving, is run by Volkswagen’s Audi luxury-car unit. Additionally, they will form the foundation of Argo’s presence in Europe.
Volkswagen, Ford team up to make autonomous, electric vehicles
Furthermore, key auto producers have been combining efforts and ideas as they try to advance electric cars and self-driving while building a business model around them.
San Francisco-based Cruise subsidiary named General Motors Company is developing a self-driving system with Honda Motor Company, since they have agreed to invest a whopping $2.75 billion in Cruise.
General Motors has said that the startup has attracted more than $6 billion in other business investment and was even valued at $19 billion after its most recent financing round in May 2019.
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Conference Scheduled by Ford and Volkswagen
Ford and Volkswagen slated a news conference for Friday morning to provide details of further cooperation between the United States and German auto manufacturers. Sometime this year, the two auto companies agreed to cooperatively develop and manufacture normal commercial trucks and vans. Similarly, the world is anticipating them to highlight their plans to work together to improve their electric vehicles.
Volkswagen AG and Ford Auto Company stated discussions late last year that led to the January deal to team up to manufacture trucks and vans for commercial markets around the world. By the same token, the idea to team up for the production of self-driving and electric car technology matured from those earlier discussions. However, the two companies have stated that they aren’t interested in any cross-ownership deals with each other.
Partnership Between Other Auto Makers
In a bid to develop electric and autonomous cars, numerous partnerships has spawned between auto manufacturing companies, vehicle dealers & brokers and tech firms. These partnership has a simple goal of solving what General Motor’s CEO Mary Barra has called “one of the largest mechanical challenges of the 21st century.”
Popular luxury car rivals from Germany; Daimler AG and BMW AG are currently working together to develop and upgrade smartphone-based mobility services and self-driving cars.
Also, Alphabet Incorporated “Waymo unit”, considered by various experts to be farthest along in technical development, is working together with a number of vast auto producers. Equally important, these car makers include France’s Renault SA, its alliance partner, Japan’s Nissan Motor Company and Fiat Chrysler Automobiles NV.
In conclusion, consulting firm AlixPartners LLP predicts that about 45 billion US dollars will be spent on developing autonomous vehicles globally come 2025.