Volkswagen AG CEO Dr. Herbert Diess, left, and Ford CEO Jim Hackett throughout a press convention in New York, July 12, 2019.
Meghan Reeder | CNBC
Volkswagen AG has closed on its $2.6 billion investment in Argo AI, the Pittsburgh-based autonomous car start-up introduced in a weblog publish Tuesday.
The German automaker’s take care of Argo and Ford Motor, which acquired a majority stake in the start-up in 2017, included $1 billion in money and Argo taking on VW’s European self-driving unit, valued at $1.6 billion, in addition to the unit’s greater than 1,000 workers. VW additionally agreed to buy $500 million in shares of Argo from Ford over a three-year interval. The deal was first introduced in July 2019.
“This news not only solidifies our well-capitalized position, but differentiates us as the only self-driving technology platform company with partnerships and commercial agreements for deployment across the U.S. and Europe,” Argo CEO Bryan Salesky and Reinhard Stolle, vice chairman of Argo Munich, wrote on Medium.com.
Ford executives, in a separate assertion, stated the deal will “better serve our future customers while improving cost and capital efficiencies.”
In April, Ford stated it could postpone plans to launch its autonomous car business providers with Argo from subsequent 12 months to 2022 because of the coronavirus pandemic.