- Volkswagen to join Ford in investing in Argo AI, the autonomous
vehicle platform company, at a valuation of more than $7 billion.
Tie-up allows both automakers to independently integrate Argo AI’s
self-driving system into their own vehicles, delivering significant
global scale
- Ford 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, more efficiently advancing its promise to deliver
expressive passenger cars while taking advantage of Volkswagen’s
scale
- Ford and VW on track to develop commercial vans and medium
pickups for each brand in select global markets starting in 2022;
sharing development costs to generate significant synergies
- The Volkswagen-Ford global alliance – which does not involve
cross-ownership between the companies – is expected to create
annual efficiencies for each company
Ford Motor Company and Volkswagen AG today announced they are
expanding their global alliance to include electric vehicles – and
will collaborate with Argo AI to introduce autonomous vehicle
technology in the U.S. and Europe – positioning both companies to
better serve customers while improving their competitiveness and
cost and capital efficiencies.
Volkswagen CEO Dr. Herbert Diess, Ford President and CEO Jim
Hackett as well as Argo AI CEO Bryan Salesky announced Volkswagen
is joining Ford in investing in Argo AI, the autonomous vehicle
technology platform company.
Working together with Ford and Volkswagen, Argo AI’s
self-driving system (SDS) is the first with commercial deployment
plans for Europe and the U.S. Plus, being able to tap into both
automakers’ global reach, Argo AI’s platform has the largest
geographic deployment potential of any autonomous driving
technology to date. Volkswagen and Ford independently will
integrate Argo AI’s SDS into purpose-built vehicles to support the
distinct people and goods movement initiatives of both
companies.
Argo AI’s focus remains on delivering a SAE Level 4-capable SDS
to be applied for ride sharing and goods delivery services in dense
urban areas.
Ford and Volkswagen will have an equal stake in Argo AI, and
combined, Volkswagen and Ford will own a substantial majority. The
remainder will be used as an incentive pool for Argo AI employees.
The full transaction is subject to regulatory approvals and closing
conditions.
“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,” Hackett said. “Unlocking
the synergies across a range of areas allows us to showcase the
power of our global alliance in this era of smart vehicles for a
smart world.”
Company leaders also announced Ford will become the first
additional automaker to use Volkswagen’s dedicated electric vehicle
architecture and Modular Electric Toolkit – or MEB – to deliver a
high-volume zero-emission vehicle in Europe starting in 2023.
Ford expects to deliver more than 600,000 European vehicles
using the MEB architecture over six years, with a second all-new
Ford model for European customers under discussion. This supports
Ford’s European strategy, which involves continuing to play on its
strengths – including commercial vehicles, compelling crossovers
and imported iconic vehicles such as Mustang and Explorer.
Volkswagen started developing its MEB architecture in 2016,
investing approximately $7 billion in this platform. The car-maker
is planning to use this platform to build approximately 15 million
cars for the Volkswagen Group alone in the next decade.
For Ford, using Volkswagen’s MEB architecture is part of its
more than $11.5 billion investment in electric vehicles worldwide –
and supports Ford’s commitment to offer its European customers a
broad range of electric vehicles while meeting its sustainability
commitments.
“Looking ahead, even more customers and the environment will
benefit from Volkswagen’s industry-leading EV architecture. Our
global alliance is beginning to demonstrate even greater promise,
and we are continuing to look at other areas on which we might
collaborate,” Diess said. “Scaling our MEB drives down development
costs for zero-emissions vehicles, allowing for a broader and
faster global adoption of electric vehicles. This improves the
positions of both companies through greater capital efficiency,
further growth and improved competitiveness.”
The alliance, which covers collaborations outside of Volkswagen
and Ford’s joint investments in Argo AI, does not entail
cross-ownership between the two companies and is independent from
the investment into Argo AI. The alliance is governed by a joint
committee, which is led by Hackett and Diess and includes senior
executives from both companies.
The companies also are on track to deliver medium pickup trucks
for global customers, aiming to start in 2022, followed by
commercial vans.
Equal Shareholders in Argo AI
Volkswagen will invest $2.6 billion in Argo AI by committing $1
billion in funding and contributing its $1.6 billion Autonomous
Intelligent Driving (AID) company, which includes more than 200
employees – most of whom have been developing self-driving
technology for the Volkswagen Group.
As part of the transaction, Volkswagen also will purchase Argo
AI shares from Ford for $500 million over three years. Ford will
invest the remaining $600 million of its previously announced $1
billion cash commitment in Argo AI.
The full transaction represents a valuation for Argo AI that
totals more than $7 billion.
Both automakers see significant potential, including profitable
growth by tapping new business areas tied to autonomous
technology.
Argo AI plans to work closely with Ford and Volkswagen to
provide the autonomous vehicle technology the automakers need to
deliver fully integrated self-driving vehicles that can be
manufactured at scale for safe, reliable and durable deployment in
ride sharing and goods delivery services.
“Argo AI is fortunate to have a world-class team due to our
clear mission and the commitment to deployment from our partners,
and together with AID employees, we will have a global workforce to
attract even more of the best talent,” said Salesky, co-founder of
Argo AI. “Plus, thanks to Ford and Volkswagen, Argo AI technology
could one day reach nearly every market in North America and
Europe, applied across multiple brands and to a multitude of
vehicle architectures.”
Based in Munich, Germany, AID will become Argo AI´s new European
headquarters and will be led by AID’s current CEO Karlheinz Wurm.
With the addition of AID employees, Argo AI will grow from 500 to
over 700 employees globally.
In addition to its global headquarters in Pittsburgh, Pa., the
new location marks Argo AI’s first engineering center in Europe and
the fifth globally in addition to Dearborn, Mich.; Cranbury, NJ;
and Palo Alto, Calif. Collaborating with Ford, Argo AI also is
testing its technology in Miami and Washington, D.C., where
together they plan deployment of commercial services.
Ford to Use Volkswagen’s MEB Electric Vehicle Architecture
for 600,000 Vehicles
Ford plans to design an all-new, MEB-platform-based EV model,
which starts arriving in 2023, in K�ln-Merkenich, Germany.
Volkswagen will supply MEB parts and components as part of the
collaboration.
Both companies also will continue to target additional areas
where they can work together on electric vehicles – a key strategic
priority for both companies as they drive to accelerate the
transition to sustainable and affordable mobility.
The agreement with Ford is a cornerstone in Volkswagen’s
electric strategy, supporting the growth of the e-mobility industry
and facilitating global efforts to reach the Paris 2050
Agreement.
Commercial Van and Pickup Collaboration On-Track
Ford and Volkswagen remain on track in their previously
announced plan to improve their respective strengths in commercial
vans and medium pickups in key global markets. The work on these
vehicle lines will create significant efficiencies for each
company.
Ford will engineer, source and build the previously announced
medium pickup for both companies for customers in Europe, Africa,
the Middle East, Asia Pacific and South America, with trucks
expected to arrive in key markets as early as 2022.
For both companies, Ford intends to engineer, source and build
larger commercial vans for European customers starting in 2022, and
Volkswagen intends to develop, source and build a city van for sale
in Europe and other select global markets.
Volkswagen and Ford have strong complementary commercial van and
pickup businesses around the world, with popular models including
the Ford Transit lineup and Ranger as well as the Volkswagen
Transporter, Caddy and Amarok.
As both companies expect customer demand for medium pickups and
commercial vans to grow globally in the next five years,
collaborating on these key segments will allow better technologies
and more innovation to reach their respective customers more
quickly – with better plant capacity utilization.
About Volkswagen Group
The Volkswagen Group, with its headquarters in Wolfsburg, is one
of the world’s leading automobile manufacturers and the largest
carmaker in Europe. The Group comprises twelve brands from seven
European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA,
Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen
Commercial Vehicles, Scania and MAN. The passenger car portfolio
ranges from small cars all the way to luxury-class vehicles. Ducati
offers motorcycles. In the light and heavy commercial vehicles
sector, the products include ranges from pick-ups, buses and heavy
trucks. Every weekday, 664,496 employees around the globe produce
on average 44,567 vehicles, are involved in vehicle-related
services or work in other areas of business. The Volkswagen Group
sells its vehicles in 153 countries. In 2018, the total number of
vehicles supplied to customers by the Group globally was 10,8
million (2017: 10,7 million). The passenger car global market share
was 12.3 per cent. In Western Europe 22.0 per cent of all new
passenger cars come from the Volkswagen Group. Group sales revenue
in 2018 totaled €235.8 billion (2017: €231 billion). Earnings after
tax in 2018 amounted to €17.1 billion (2017: €11.6 billion).
www.volkswagenag.com.
About Ford Motor Company
Ford Motor Company is a global company based in Dearborn,
Michigan. The company designs, manufactures, markets and services a
full line of Ford cars, trucks, SUVs, electrified vehicles and
Lincoln luxury vehicles, provides financial services through Ford
Motor Credit Company and is pursuing leadership positions in
electrification, autonomous vehicles and mobility solutions. Ford
employs approximately 196,000 people worldwide. For more
information regarding Ford, its products and Ford Motor Credit
Company, please visit www.corporate.ford.com.
About Argo AI
Argo AI is an autonomous vehicle technology platform company
based in Pittsburgh, Pennsylvania. The company is developing
self-driving technology in partnership with leading automakers to
provide a safer, more affordable, convenient, and accessible way to
get around. Argo AI employs approximately 500 people with
engineering centers located in Dearborn, Mich.; Cranbury, NJ; and
Palo Alto, Calif. For more information regarding Argo, please visit
www.argo.ai.
Forward Looking Statements
Statements included herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are based on current
expectations for future events. Actual results could differ
materially from those stated because of risks, uncertainties and
other factors, including those related to market acceptance of new
and existing products and mobility services; defects that result in
delays in new model launches, recall campaigns, or increased
warranty; modifications to product plans to comply with safety,
emissions, fuel economy, and other regulations; and cybersecurity
risks. Forward-looking statements speak only as of the date of
their initial issuance. For additional discussion, see Item 1A in
Ford’s 2018 Form 10-K report.
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version on businesswire.com: https://www.businesswire.com/news/home/20190712005239/en/
Volkswagen Media Relations Marc
Langendorf +49.5361.9334474 marc.langendorf@volkswagen.de
Pietro Zollino +1.703.364.7016 Pietro.Zollino@vw.com
Volkswagen Investor Relations
Oliver Larkin +49.152.588.72711 oliver.larkin1@volkswagen.de
Andreas Buchta +49.5361.940765 Andreas.buchta@volkswagen.de
Ford Communications Jennifer Flake
+1.313.903.0429 jflake1@ford.com
Dan Pierce +1.313.590.9379 dpierc41@ford.com
Michael Baumann +49.152.5495.2780 Mbauman9@ford.com
Ford Investor Relations: Equity
Community Lynn Antipas Tyson +1.914.485.1150
ltyson4@ford.com
Ford Investor Relations: Fixed Income
Community Karen Rocoff +1.313.621.0965 krocoff@ford.com
Argo AI Communications Alan Hall
+1.734.845.4410 ahall32@argo.ai
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