Volkswagen in Talks with Ford to Invest in Self-Driving Startup Argo AI
【Summary】Automakers are continuing to form strategic partnerships with tech companies and rivals to accelerate the development of self-driving cars. The latest being Volkswagen, who is reported to be in talks with the Ford Motor Co to work together on electric and self-driving cars.
Automakers are continuing to form strategic partnerships with tech companies and rivals to accelerate the development of self-driving cars. The latest being Volkswagen, who is reported to be in talks with the Ford Motor Co to work together on electric and self-driving cars. The discussions were first reported by Automotive News.
As part of the deal, Volkswagen is considering an investment in Argo AI, a Ford-backed startup working on robotics and artificial intelligence for self-driving cars, people familiar with the discussions said. According to Automotive News, the two companies are nearing a framework agreement to collaborate on electric and self-driving vehicles, two crucial technologies set to transform the automotive industry.
VW also is poised to share electric-vehicle technology in addition to the multi-billion dollar investment the automaker has already committed to developing new electric models said the people, who asked not to be identified. VW plans to roll out around 20 fully-electric models beginning in 2020. starting with the I.D. Neo in Europe, a five-door hatchback based on the Golf.
The possible investment in Argo is significant, as it could accelerate VW and Ford's self-driving efforts. The cooperation would allow them to share costs and potentially catch up to rivals. Both companies are perceived as falling behind on self-driving technology.
The VW board of supervisors will consider its strategic relationship with Ford on Nov. 16, Reuters reported. VW declined to comment.
Ford spokeswoman Jennifer Flake a said the company is talking with VW about potential collaboration across multiple areas and that it's premature to share additional details now.
In 2017, Ford made headlines when the company announced it was investing $1 billion in Argo AI, the Pittsburgh-based startup founded by former Google and Uber leaders working on robotics and artificial intelligence software for autonomous vehicles. Argo is working with Ford to develop a new software platform for Ford's fully autonomous vehicle the company plans to launch in 2021.
Together with its partner Argo AI, Ford has said it was open to outside investment in its autonomous efforts by a second automaker. The talks to bring on VW are progressing well and have the potential to create a global competitor in the self-driving race, one person familiar with the discussions said.
Automotive & Tech Company Partnerships
Self-driving cars are expected to upend the transportation industry and become a business worth around $7 trillion by over the next several decades, according to a report last year by Intel Corp. and Strategy Analytics. Automakers, as well as tech companies, are actively forming partnerships to accelerate their efforts in autonomous technology and commercial mobility services.
Ford rival General Motors is viewed as being ahead of Ford in the race to introduce self-driving technology. In 2016, GM purchased San Francisco self-driving startup Cruise for $1 billion. The tow companies are working to launch self-driving cars in 2019, putting GM in the lead over Ford.
Last month, Cruise received a separate $2.75 billion investment from Honda Motor Co, as Honda looks to accelerate its own self-driving technology with help from a partner.
Chipmaker Intel is working to become a major supplier of the robust hardware required for autonomous driving. The company purchased Israel-based computer vision startup Mobileye for $15 billion in 2017. German automaker BMW is working with Intel and Mobileye on autonomous driving systems for BMW's upcoming models.
In an interview with Automotive News published this week, Volkswagen CEO Herbert Diess said the discussions between Ford and VW could go much further, including sharing of VW's flexible MEB platform for electric vehicles with Ford and the potential use of Ford's Ranger platform to replace the VW Amarok pickup truck sold outside the U.S.
For its part, Ford remains open to working with VW on automotive technology.
.Ford CFO Bob Shanks told Bloomberg last month, "We're having a very broad set of discussions about how we can help each other around the world. Collaboration isn't being limited in any way whatsoever."
Originally from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry in Silicon Valley. Eric has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology. Outside of work, Eric likes to travel to new places, play guitar, and explore the outdoors.
Hydrogen-Powered Truck Startup Nikola Announces a New 'Game-Changing' EV Battery Technology
Didi Chuxing to Trial Luxury Ride-Hailing Service with Tesla & Mercedes Benz Vehicles
Volkswagen is Investing $66 Billion in E-Mobility and Digital Technology
Ford Officially Confirms the 'Mustang Mach-E' Name for its First Fully-Electric SUV
Xilinx Announces New High-Performance Adaptive Devices for Autonomous Driving & ADAS Applications
Chinese Electric Vehicle Startup Xpeng Motors Raises $400 Million in Series C Funding
Hyundai Develops the World’s First Active Noise Cancelling Technology for Passenger Vehicles
California EV Startup Lucid Motors Begins Construction on its Arizona Factory
- Fiat Chrysler & PSA Group Reach Deal to Become the World’s 4th Biggest Automaker
- Ford Motor Co Develops a Unique Way to Keep Self-Driving Vehicle Sensors Bug-Free
- Waymo is Sharing its Massive Self-Driving Dataset With Researchers
- Tesla Will Unveil its new Electric ‘Cybertruck’ on Nov 21
- Startup Rivian Planning to Offer Subscription Services for EVs
- Toyota's Luxury Brand Lexus to Debut its First Electric Vehicle
- Elon Musk Says He’s Bringing a Model S to Nurburgring to Challenge the Porsche Taycan's Record Time
- Motiv Power Systems Raises $60 Million, Company is Converting Ford Trucks to Zero Emission EVs
- Continental AG Powertrain Arm Rebrands as Vitesco Technologies, Supplying Electric Drive Units to Hyundai and Groupe PSA
- Electric Automaker Tesla is Offering Auto Insurance in California