7/12/2019, 2:05 PM (Source: TeleTrader)
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VW to invest $2.6B in Ford self-driving car unit

German auto giant Volkswagen AG will invest $2.6 billion in the Ford Motor Company's self-driving car division, the two companies announced at a press conference on Friday.

Volkswagen will invest the funds in Argo AI, the self-driving car company that is majority-owned by Ford and valued at around $7 billion. The German carmaker will also purchase Argo's shares from its United States counterpart as part of the deal. Ford also said that it will be the first company to use VW's electric vehicle architecture when it is completed to produce electric vehicles for the European market from 2023 onwards.

The news comes after media reported on Thursday that the pair were scheduled to hold a conference at which they would unveil new joint ventures on self-driving and electric vehicles. The two carmakers initially announced in January that they would join forces to build pickup trucks, delivery vans and to explore collaborating on electric and self-driving vehicles.

Breaking the News / DZ