Volkswagen AG and Ford Motor Co. will cooperate on electric and self-driving car technology, sharing costs on a global scale to take a major step forward in the industry's disruptive transformation.
VW will invest $2.6 billion in Ford's autonomous-car partner Argo AI in a deal that values the operation at more than $7 billion, the two manufacturers said Friday in a joint statement in New York, confirming a figure first reported by Bloomberg. This includes $1 billion in funding and VW contributing its Audi $1.6 billion Autonomous Intelligent Driving unit.
"While Ford and Volkswagen remain independent and fiercely competitive in the marketplace, teaming up and working with Argo AI on this important technology allows us to deliver unmatched capability, scale and geographic reach," Ford Chief Executive Officer Jim Hackett said.