DETROIT (CBS DETROIT/AP) — Two automotive powerhouses are joining forces.
Volkswagen will sink $2.6 billion into a Pittsburgh autonomous vehicle company that’s mostly owned by Ford as part of a broader partnership with the U.S. No. 2 automaker, according to a person briefed on the matter.
The German and U.S. manufacturers will cooperate on the development of electric vehicles, the automakers will announce Friday in New York.
The person says the two will become equal owners of Argo AI, which is developing autonomous vehicle systems. The person didn’t want to be identified because the figures haven’t been officially announced.
The VW investment includes $1 billion in cash and the $1.6 billion value of VW’s autonomous intelligent driving company. Ford already has committed to putting $1 billion into Argo, which the person says is now valued at $7 billion.
Also under the deal, Ford will use VW’s new modular electric vehicle underpinnings to build zero-emissions vehicles for the European market, according to another person briefed on the matter who also didn’t want to be identified ahead of the official announcement.
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