NEW YORK (AP) — The Latest on Ford's alliance with Volkswagen (all times local):
Auto industry watchers say Ford and Volkswagen have the right idea with their new partnership to develop autonomous and electronic vehicle technology.
The companies on Friday announced Friday that Volkswagen will invest $2.6 billion into a Pittsburgh autonomous vehicle company that's mostly owned by Ford.
Jessica Caldwell, executive director industry insights for the Edmunds.com auto pricing site, says the deal should help both companies and is an example of what's needed in the business to share enormous capital costs.
She says both automakers are facing immense challenges and that together, they can reinvent themselves as innovative technology leaders.
Caldwell says the partnership will help to accelerate the development and adoption if new, high-tech vehicles.
Volkswagen will sink $2.6 billion into a Pittsburgh autonomous vehicle company that's mostly owned by Ford as part of a broader partnership on electric and self-driving vehicles.
The companies confirmed the investment at a news conference in New York on Friday.
The two automakers will become equal owners of Argo AI, a robocar firm that was majority-owned by Ford, with plans to put autonomous vehicles on the roads in the U.S. and Europe.
The deal also includes a plan for Ford to use VW's modular electric vehicle underpinnings to build zero-emissions cars for the European market starting in 2023.
The tie-up has been in the works for months and is another in a long string of industry partnerships as auto companies and tech firms try to spread the enormous costs of developing self-driving and electric vehicles.
A person briefed on the matter says Volkswagen will sink $2.6 billion into a Pittsburgh autonomous vehicle company that's mostly owned by Ford.
It's part of a broader partnership with the U.S. No. 2 automaker.
The German and U.S. manufacturers also will cooperate on 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 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.