Ford Investing $4 Billion as It Consolidates Autonomous Vehicle Business

Ford is investing $4 billion in its autonomous vehicle business, including a $1 billion plug in Argo AI, through 2023, it said Tuesday, announcing a reorganization effective Aug. 1 (see the personals section of this issue). The automaker is consolidating its autonomous driving platform under Ford Autonomous Vehicles to include self-driving systems integration, autonomous vehicle research and advanced engineering, AV transportation-as-a-service network development, user experience, business strategy and business development teams. The limited-liability corporation, looking for third-party investment, will be based at Ford’s Corktown campus in Detroit and will hold Ford’s ownership stake in Argo AI, its Pittsburgh-based partner for self-driving system development, it said. Closer alignment of the self-driving platform and mobility solutions teams will allow faster development of businesses that can advance in the pre- and post-autonomous vehicle worlds, said the company. Ford’s electric vehicle strategy involves “rethinking the ownership experience,” including making charging “an effortless experience” at home and on the road, and offering full-vehicle over-the-air software updates for additional features, it said. Citing available computing power in cars and mobile devices, Ford CEO Jim Hackett said, “We can now harness this technology to unlock a new world of vehicle personalization, supply chain choreography and inventory leanness that rivals any industrial model in the world.”