Volkswagen’s $ 2.6 billion investment in Argo Al’s self-propelled Ford Motor Co. announced today Friday that the second consecutive start of Pittsburgh was postponed to the top in the sector.
Argo said that VW was investing $ 1 billion in cash and contributing with its own self-proclaimed European amount of $ 1.6 billion. The investment agreement gives Argo a $ 7 billion valuation, one of the highest in the automotive sector.
VW is buying Argo shares for another $ 500m from Ford, which won most of the Pittsburgh-based start-ups in 2017. VW and Ford then each will have a minority stake, as would Argo Bryan’s founders Salesky and Peter Rander and a pool of Argo employees.
VW and Ford each will hold two seats on Argo’s board – representing a vote of just under 30% each – while Argo will hold three seats, representing slightly more than 40%. Companies refused to disclose their current shares in Argo.
Ford previously agreed to inject $ 1 billion into five years at Argo.
In an interview, Argo Chief Executive Salesky said, “We have two great clients and investors who will help us in real scale and are committed to us for a long time.”
Salesky said Argo would welcome other strategic or financial investors to help split the costs of bringing cars to the market.
He said, “We all understand that this is a time, talent and intensive capital business.”
The Ford-VW partnership with Argo can help accelerate the schedule of placing two automakers planning to put autonomous vehicles into action in 2021.
Argo is overlooked as Waymo, albania Inc., has set up robo-vans and the Automation Unit’s Automation Unit of General Motors Co. has raked in billions of dollars in investment.
With VW, the world’s largest automobile manufacturer with sales volume last year, Argo is now in line with a respected partner and resources. VW also has a wider product portfolio that includes heavy trucks and off-road vehicles that can be automated with the help of Argo.
“Our platform is scalable for any type of machine,” Salesky said.
Ford-VW’s collaboration with Argo may also have wider implications for similar alliances, as well as initial company-related ratings.
The value of launching the autonomous Cruise car rose to $ 19 billion earlier this year after attracting more than $ 6 billion in investment from SoftBank Group, Honda Motor Co and T. Rowe Price.
Value of Uber Technologies’ travel services service’s Advanced Technologies Group climbed to more than $ 7 billion a year earlier since SoftBank, Toyota Motor Corp and Denso Corp. invested $ 1 billion.
These estimates disappeared from estimates for Waymo, which has been widely accepted as the sector leader. Morgan Stanley estimates Waymo up to $ 175 billion, while Jefferies estimates the company up to $ 250 billion.
VW is said to be considering a $ 13.7 billion investment last year at Waymo for a 10% stake that would rate Waymo at $ 137 billion./Investing.com