Ford-Volkswagen Alliance will Now Focus on Development of Autonomous and Electric Vehicles
January this year, the two major automobile companies, Ford and VolksWagan, joined their forces to manufacture pickup trucks and vans, and now almost seven months later, the two wants to expand their partnership by adding a few more services in their list that they will be developing together. The two companies have confirmed that they will now be working together to build autonomous and electric vehicles.
In the past few years, many of the major automobile companies have shifted their focus to autonomous and driver-less cars. Those companies have realised the scope of such vehicles and are investing a lot of money in the field.
In fact, Ford is already working towards developing autonomous taxis and has partnered with Argo AI, a self-driving-car developer. Noticeably, Ford announced in 2017 that it will be investing over a billion dollar in the startup (Argo AI) in the coming five years, in order to bring its own autonomous and electric vehicles on the roads.
According to the reports, under the deal between Ford and VW, the latter will also be putting a huge sum of $2.6 billion in Argo AI, as the startup will be playing a significant part in the development work. VW will be paying a $1 billion in cash and the rest of the sum will be paid in the form of assets. The VolksWagso’s Munich-based Autonomous Intelligent Driving team will be joining Argo AI for the development work as one of the assets.
Argo AI is an independent company that has been developing autonomous and electric vehicles for the cities with well-marked roads and which are properly geo-fenced. The company has successfully tested its driver-less vehicles in five U.S. cities, including Pittsburgh, Palo Alto, Detroit, Miami and Washington, D.C.
“Ford and VW will remain ‘independent and fiercely competitive’ in the marketplace. 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.” the CEO Ford Motor Company, Jim Hackett, said in a statement.
The reports say that with the deal, Ford will get the access to VW’s electric-vehicle MEB platform. The company plans to launch over 60000 self-driving cars, based on the MEB architecture, in a span of six years in the various cities in Europe and will start the mass production from 2023.
Though the companies will be building their own self-driving and autonomous cars on their own, the two will be using the same software and architecture for the development work. The collaboration between the two will help both in speeding up the development and will push the governments to add their support in such projects.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.