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VW closes $2.6 billion investment in self-driving startup Argo AI

Published 02/06/2020, 05:23
Updated 02/06/2020, 05:25
© Reuters. FILE PHOTO: Signage at a Volkswagen dealership is seen in London, Britain

(Reuters) - German automaker Volkswagen AG (DE:VOWG_p) has closed its $2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by VW and Ford Motor Co (N:F), which made an initial investment in Argo shortly after it was founded.

Details of the VW investment, which does not include an agreement to purchase $500 million (2.08 billion pounds) worth of Argo stock from Ford, was announced last July.

VW's agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo's employment to more than 1,000, according to Salesky.

Last week, VW disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

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