DEARBORN (dpa-AFX) - Ford Motor Co. (F) and Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) entered in to a deal to invest in the autonomous vehicle platform company Argo AI for introducing autonomous vehicle technology in the U.S. and Europe, the companies said.
Volkswagen will invest about $2.6 billion in Ford's autonomous-vehicle partner, Argo AI, in a deal that values the startup at more than $7 billion.
The collaboration allows both automakers to independently integrate Argo AI's self-driving system into their own vehicles. The alliance does not involve cross-ownership between the companies.
Ford and Volkswagen will have an equal stake in Argo AI, and combined, Volkswagen and Ford will own a considerable majority.
Ford said it will use Volkswagen's electric vehicle architecture and Modular Electric Toolkit (MEB) to design and build at least one high-volume fully electric vehicle in Europe for European customers starting in 2023.
Ford and Volkswagen are on track to develop commercial vans and medium pickups for each brand in select global markets starting in 2022.
Copyright RTT News/dpa-AFX