Argo AI, the autonomous car expertise firm backed by Ford and Volkswagen Group, is shutting down because the automakers shift their methods for self-driving vehicles.
Ford determined it wanted to put money into driver-assistance expertise that was extra achievable within the close to time period somewhat than Argo’s objective for driving with little human interplay, the automaker mentioned in an announcement.
“Worthwhile, totally autonomous autos at scale are a great distance off and we gained’t essentially should create that expertise ourselves,” Ford CEO Jim Farley mentioned in an announcement Wednesday.
Ford’s choice led VW to stroll away, too, in line with individuals aware of the matter.
VW mentioned it’s now not investing in Argo AI and plans to focus its automated driving efforts on its present partnerships with Bosch and Horizon Robotics in China.
Ford and VW proceed to cooperate on electrical and business autos within the U.S. and Europe.
Ford will file a $2.7 billion non-cash, pretax impairment on the Argo AI funding. Argo AI was unable discover different buyers, Ford mentioned. The automaker had backed Argo since 2017. The autonomous firm had greater than 2,000 staff as of July.
“Most of the workers will obtain a possibility to proceed work on automated driving expertise with both Ford or Volkswagen, whereas employment for others will sadly come to an finish,” mentioned Argo AI in an announcement.
Argo AI in July mentioned it had laid off about 150 workers because it made changes to its enterprise plans. It nonetheless had over 2,000 workers globally after the job cuts.
Began in 2016, Pittsburgh-based Argo AI was creating the expertise behind driverless autos. It had raised at the very least $3.6 billion in investments, primarily from Ford and VW.
VW business autos will pursue a partnership with a brand new, soon-to-be named associate, the carmaker mentioned in its assertion, with prototypes for its electrical van, the ID. Buzz, already in check section.
The primary outcomes from the partnership between Volkswagen’s software program unit Cariad and Bosch, introduced in January this yr, are deliberate for 2023, the assertion mentioned.
VW disclosed a $2.6 billion funding in Argo AI in June 2020.
The funding meant the startup was collectively managed by the German carmaker and Ford, which made an preliminary funding in Argo AI shortly after it was based.
“Volkswagen is working with Argo AI to allow additional working alternatives for workers and proceed creating the promising initiatives on autonomous driving. All additional cooperations with Ford stay unchanged,” VW mentioned.
Reuters contributed to this report.