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Volkswagen to inject $2.6 billion into Ford unit Argo AI - source

Volkswagen to inject $2.6 billion into Ford unit Argo AI - source
FILE PHOTO: The logo of Volkswagen is seen in front of its construction's plant, in Bratislava, Slovakia, July 4, 2019. REUTERS/Radovan Stoklasa -
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RADOVAN STOKLASA(Reuters)
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HAMBURG (Reuters) – Carmaker Volkswagen <VOWG_p.DE> will inject $2.6 billion (£2.1 billion) into Ford’s self-driving unit Argo AI at an overall valuation of $7 billion in the deal, a source close to the matter said on Friday.

Volkswagen will contribute $1 billion in capital and $1.6 in own business activities, and VW and Ford will be equal stakeholders of the venture, the source said.

Ford and VW said on Thursday they are expanding their global alliance and that they would announce details on a technology-sharing agreement on Friday.

The collaboration on Argo, the Pittsburgh start-up that has spearheaded Ford’s self-driving activities since 2017, could help reduce engineering and development costs. It could also accelerate the deployment timetables of both, which have said they plan to put autonomous vehicles into operation in 2021.

(Reporting by Jan Schwartz; Writing by Arno Schuetze; Editing by Tassilo Hummel)

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