15.7.2019. The Ford Motor Company and Volkswagen AG expand their global cooperation. It now also includes the areas of electric mobility, and in conjunction with Argo AI – Autonomous Driving, to be introduced on the US market and in Europe. In order for both companies to increase their competitiveness, the products even better to the wishes of the customers around the world to vote and at the same time synergies in costs and investments.
The Chairman of the Board, Dr. Herbert Diess (Volkswagen Aktiengesellschaft), Jim Hackett (Ford) and Bryan Salesky (Argo al), confirmed that Volkswagen will be investing with Ford in the Autonomous Driving specialized company Argo AI. Through future cooperation with Volkswagen and Ford the Self-Driving System (SDS) of Argo is AI, the first System for Autonomous Driving, to be launched in Europe and in the US as well as for commercial use.
The global presence of both the manufacturer offers Argo AI in addition, the possibility of the technology in other markets. Volkswagen and Ford want to use the SDS Argo AI in their own vehicles independently of each other, the respective mobility services of the two companies. The SDS Argo AI to fully enable automated Driving in accordance with SAE Level 4 and, in particular, Ridesharing and delivery services in the inner cities of new opportunities by means of fully automated vehicles open.
Ford and Volkswagen are, in return, receive equal shares of Argo AI. Together, Ford and Volkswagen hold a significant majority in Argo al. The remaining shares will be used for an incentive pool for employees of Argo AI. This agreement is subject to the approval of the relevant regulatory authorities and compliance with contractual conditions.
Ford President and CEO Jim Hackett said: “While Ford and Volkswagen to remain independent competitors, increased cooperation both with Argo, AI is the efficiency, the economies of scale and geographic range in the field of Autonomous driving. Synergies in several areas of our global cooperation will ensure that we can develop entire energy-smart cars for a smart world.”
As one of the first car manufacturers Ford wants to use the Modular E-drive modular system (MDB) of the Volkswagen group. Starting in 2023, the company aims to offer an emission-free large-scale series production vehicle to MEB-a base for the European market. Ford expects more than 600,000 vehicles sold within six years in Europe. In addition, Ford is examining a second model MEB-base for the European market.
Part of the Europe strategy of Ford, it is, on its own Strengths – and strengthen them. This commercial vehicles, attractive Crossovers and imported icons such as the Mustang and Explorer closes.
Volkswagen has invested since 2016 to around seven billion dollars in the development of its MDS architecture. Alone in the next decade more than 15 million new vehicles from the group are to be based on the MEB.
Ford is investing a total of $ 11.5 billion in the electrification of its global vehicle range. This also includes the use of the MEB architecture of Volkswagen. So Ford wants to increase the range of electric vehicles for European customers, and its sustainability goals.
“In the future, more and more customers and also the environment of the ground-breaking E-vehicle benefit-architecture of the Volkswagen group. Our Alliance with Ford is developing more and more promising. We will also examine further possibilities for cooperation,” said Diess. “The scale of our Modular E-drive modular system, the MEB reduces the development costs for emission-free vehicles and it allows us to even more extensive and faster global diffusion of E-cars. This improves the positioning of the two companies through better capital efficiency, further growth and increased competitiveness.”
The cooperation between The two companies goes beyond the common Investment in Argo al, but no capital links prior to available. It is, therefore, independent of the investment in Argo al. Is controlled by the Alliance through a joint Executive Committee, consisting of managers from both companies and from the Chairman of the Board Diess and Hackett is headed.
Volkswagen and Ford have seen their planned development of medium-sized Pick-ups for the global market, starting in 2022, and the following commercial vehicles are on a good path.
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- Equal shares of Argo AI
- Ford uses the Modular E-drive modular system (MDB) from Volkswagen for 600,000 cars
- Cooperation in the case of vans and Pick-ups in Plan
Equal shares of Argo AI
Volkswagen invested a total of $ 2.6 trillion in Argo al. On the one hand by the provision of financial means in the amount of one billion US dollars, and on the other by Volkswagen brings in its subsidiary, Autonomous Intelligent Driving (AID), which is valued at 1.6 trillion US dollars. With the AID of about 200 experts are working, most of them have developed technologies related to Autonomous Driving for the Volkswagen group.
In addition, the Volkswagen take-over a period of three years, shares in Argo AI for a total of 500 million US dollars from Ford wants. Ford will pay the remaining $ 600 million of its planned Cash Investments in the amount of one billion US dollars in Argo al. Argo AI will be assessed, including the complete transaction of the two companies with more than US $ 7 trillion.
Volkswagen and Ford lake through the development of new business fields, which are connected with Autonomous Driving, has significant potential for profitable growth.
Argo AI strives for a close collaboration with Ford and Volkswagen. Both automotive companies to gain access to technologies that you can use for the development and production of self-driving vehicles in large series. So, conceivable is a safe, reliable and durable the use of self-propelled vehicles in the area of Ridesharing and for goods delivery services.
Bryan Salesky, co-founder and CEO of Argo AI, says: “Argo AI, through its clear Mission and the commitment of our partners, the developed technologies in their vehicles, has always been top executives can commit. Through the merger with AID we to make our Team even more international. I’m sure we can inspire the best specialists in the world for Argo AI. In addition, it can be used thanks to the commitment of Ford and Volkswagen, the Argo AI technology in almost every market in North America and Europe, in different brands and different vehicle architectures.”
The AID location in Munich, is the European headquarters of Argo, al and is headed by Karlheinz Wurm, currently CEO of AID. Together with the AID of the Team of Argo AI from 500 employees to grow to around 700 Workers worldwide. In addition to the corporate headquarters in Pittsburgh (Pennsylvania), and the location in Munich Argo AI now operates five development centers. Other locations are in Dearborn (Michigan), Cranbury (New Jersey) and Palo Alto (California). Together with Ford, Argo AI tests to be SDS in Miami and Washington, D.C., Where the future use of commercial mobility services is planned.
Ford uses the Modular E-drive modular system (MDB) from Volkswagen for 600,000 cars
Ford wants to develop a private, purely battery-powered electric car based on the Modular E-Drive system from Volkswagen. Starting in 2023, the German Ford development centre in Cologne-merkenich, the vehicle is supposed to come on the market.
Both companies want to expand in addition to the cooperation in E-cars. Ford and Volkswagen are developing into a provider of sustainable and affordable mobility in electric mobility for both strategic priority.
The agreement with Ford is a cornerstone within the electric mobility strategy of Volkswagen. The resulting further growth of the electrification of the car industry, it also supports the global efforts to achieve the objectives of the Paris climate agreement, and the established CO2-neutrality by 2050.
Cooperation in the case of vans and Pick-ups in Plan
Ford and Volkswagen are the previously announced cooperation on light commercial vehicles and medium-sized Pick-ups in Plan, in order to strengthen their respective competitiveness in key markets. The Alliance creates for both companies, each with significant efficiency gains.
In the framework of this collaboration, Ford for both companies, mid-sized Pick want to develop-ups for the customers in Europe, Africa, the Middle East, the Asia-Pacific region and South America, and produce. These are expected to be in 2022 on the key markets. In addition, Ford plan, starting in 2022 for the European market, the development and production of larger vans for both companies, while Volkswagen and bring both partners a City Van on the European market, as well as selected markets in the world wants.
Both Ford and Volkswagen are placed in light-duty vehicles worldwide very well – known models such as Transit and Ranger from Ford, as well as Transporter, Caddy and Amarok from Volkswagen.
Volkswagen and Ford expect that the global demand for resources will soar to great Pick-ups and commercial vehicles in the next five years. Through the close cooperation the two companies want to bring new technologies and innovations faster to the market and your works more efficient utilization.
The Chairman of the Board, Dr. Herbert Diess (Volkswagen Aktiengesellschaft) and Jim Hackett (Ford). (Photo: Volkswagen AG)
