By WSJ City
Volkswagen has agreed to invest around $2.6bn in Ford's autonomous-vehicle partner, Argo AI, in a deal that values the startup at $7bn, according to people familiar with the matter.
--- Ford has been the majority shareholder of Argo since early 2017, when it agreed to invest $1bn.
--- Argo would develop self-driving technology for VW and eventually supply systems for commercial use.
--- The investment in Argo includes $1bn in capital funding.
--- It also includes the value of VW's 200-person autonomous-driving division, which the companies placed at $1.6bn.
Why This Matters
Major auto makers have been consolidating efforts as they race to develop driverless and electric cars and build business models around them. General Motors' San Francisco-based Cruise subsidiary is developing an autonomous-driving system with Honda, which has agreed to invest $2.75bn in Cruise.
Alphabet's Waymo unit, considered by many analysts to be furthest along in technical development, is working with several big auto makers, including Fiat Chrysler, Renault and its alliance partner, Nissan.
A fuller story is available on WSJ.com
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