Producing an autonomous car, a futurist feat, is not cheap. Since this business has an elevated cost, some of the big companies in the field have decide to join forces to boost their capacity and share expenses and close the gap with the most advanced pupil, Tesla.
Ford Motor and Volkswagen have extended their alliance with a new agreement. They have committed to exchange technology for the development of the autonomous vehicle. Volkswagen is going to share with Ford the architecture they use in the electric cars, and, on the other hand, the North American group has allowed the German company to become Argo AI’s second biggest shareholder. Argo AI is an important firm dedicated to autonomous drive systems.
For Argo AI, the renewal of the contract between the two international companies means an injection of 2.600 million dollars, thought a combination of capital and actives.
These alliances are a two-way commitment that allows companies to share expenses without being involved in expensive and complex fusion processes. They can keep functioning as independent businesses and they also benefit from the value brought by the sister company. General Motors did something similar with Honda Motor, which invested 2.750 millions in Cruise Automotion. Google works with Jaguar Land Rover and Fiat Chrysler.
The alliance between Ford and Volkswagen takes places while the American giant is in the middle of a transformation in Europe. Ford intends to address the possibilities offered by the new technologies regarding mobility. That’s why, last year, ford created a filial, Ford Autonomous Vehicles, and committed to invest 4.000 millions before 2023. Argo AI, involved in this whole process, is already testing cars in five cities of the American geography, working with Ford Fusion.
Source: El País