Volkswagen Group is planning to invest approximately $1.7 billion in Argo, Ford Motor Co.’s autonomous vehicle partner company, according to a new report.
The automakers intend to make the Pittsburgh-based Argo “the nucleus of an equally held joint venture that could receive additional assets from Volkswagen over time,” according to The Wall Street Journal.
Last month, Ford and VW announced a “global alliance” and in a press release said the companies “signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services, and electric vehicles and have started to explore opportunities.”
According to the WSJ, VW’s potential investment would provide a $600 million equity investment in Argo with the remaining $1.1 billion going toward “working capital for the venture’s research and development.” Ford and Volkswagen would equally share ownership of Argo.
Talks “are complicated, but making good progress,” and the deal still could fall through, the paper reports.