There’s new self-driving car news for Friday about Ford (NYSE:F) and Volkswagen teaming up.
Here’s what to know about the Ford and Volkswagen deal.
- This deal will have Volkswagen investing in self-driving car company Argo AI.
- It will do this by offering up its own self-driving car company and purchasing shares of Argo AI stock.
- The shares that Volkwagen is purchasing will be worth $500 million.
- They will also be bought from Ford over a period of three years.
- This will have both Ford and Volkswagen owning an equal share of Argo AI stock.
- It will also give the two companies a majority stake in the self-driving car company.
- Ford says that it will also be investing the remaining $600 million from its previously announced $1 billion cash commitment into Argo AI.
- The total value of Volkswagen’s investment into the company will be $2.60 billion when taking into account the worth of its self-driving car company.
- This deal will also provide Ford with access to Volkswagen’s Modular Electric Toolkit.
- The company will use this to create electric vehicles that will be sold in Europe.
- Ford plans to have these vehicles ready to sell by 2023.
You can follow this link to learn more about the self-driving car news surrounding the Ford and Volkswagen deal today.
F stock was up 2% as of Friday afternoon and is up 28% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.