German automobiles manufacturer Volkswagen AG is preparing to infuse approximately $1.7 billion in a self-driving car (SDC) venture with U.S. peer Ford Motor Co.’s Argo subsidiary.
Volkswagen and Ford Motor have agreed to make Ford’s autonomous-driving unit, Argo, the nucleus of an equally held joint venture that will get additional assets from Volkswagen over time.
Volkswagen’s potential commitment will provide a $600 million equity investment in Argo.
The remaining $1.1 billion will be for working capital for the venture’s research and development. The automakers will equally share ownership of Argo.