Volkswagen AG has agreed to take a position around $2.6 billion in Ford Motor Co.’s autonomous-car partner, Argo AI, in a deal that values the startup at $7 billion, based on individuals familiar with the matter.
Ford has been the bulk shareholder of Pittsburgh-based Argo since early 2017 when it agreed to invest $1 billion.
Below the agreement with Volkswagen, to be introduced on Friday, Argo would develop autonomous-driving technology for VW and finally provide techniques for industrial use, whereas persevering with its improvement work with Ford, the folks stated.
The $2.6 billion investment in Argo consists of $1 billion in capital funding in addition to the value of VW’s 200-individual autonomous-driving division in Munich, which the businesses positioned at $1.6 billion.
That group, referred to as Autonomous Intelligent Driving, is run by VW’s Audi luxurious-automobile unit and can form the foundation of Argo’s presence in Europe, the individuals stated.
Main automakers have been consolidating efforts as they race to develop driverless and electric automobiles and build business models around them.
General Motors Co.’s San Francisco-based mostly Cruise subsidiary is growing an autonomous-driving system with Honda Motor Co., which has agreed to speculate $2.75 billion in Cruise.
The startup has attracted more than $6 billion in outdoors investment and was valued at $19 billion after its newest financing round in May, GM has stated.