Home / NewTech / VW invests $ 1.7 billion in Ford's Argo-KI, the report says

VW invests $ 1.7 billion in Ford's Argo-KI, the report says

Bloomberg recently reported that Volkswagen could invest in Ford's AV subsidiary Argo AI as part of a growing partnership between the two automakers. Now we may know how much this investment will cost VW.

VW plans to invest approximately $ 1.7 billion in Argo AI, reports the Wall Street Journal, citing sources familiar with the matter. $ 600 million is said to be invested in equity, while the remaining $ 1.1 billion is earmarked for additional research and development, the sources said to the WSJ an equally held joint venture, which in the course of time additional assets could get from Volkswagen. "A previous report says the value of Argo is $ 4 billion, which would account for the reported future investment of VW at nearly 50 percent of that sum."

None of the automakers, however, is ready to miss anything. " Our discussions with Volkswagen are continuing, "a Ford spokesman said in a statement." The discussions have been productive in a number of areas. We'll be updating as details become tighter. "VW declined comment, perhaps because, as noted in the Journal's report," a definitive deal is not yet in place. "

Ford's commitment, which has been confirmed, has nothing to do with self-driving cars: VW and Ford announced at the Detroit Auto Show that the two have entered into a partnership with mid-size trucks and commercial vehicles taking Ford until 2022 Build a Truck for Both OEMs Developing Electric Vehicles on VW's Scalable Electric Vehicle MEB Platform, Underpinning VW's ID Family of Future Electric Vehicles Cars are expensive to build, so it makes sense for automakers to occasionally band together to bring products to market.

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