Pittsburgh startup, Argo Al, announced this week that German automaker, Volkswagen, closed its $2.6 billion deal with them. Part of the transaction consisted of $1 billion cash. Argo will also take over Volkswagen’s self-driving enterprise in Europe, which has a value of $1.6 billion. The European unit has 200-plus employees that will now be managed by Argo.
The deal, which was first announced last July, also includes Volkswagon’s purchase of Argo shares totaling $500 million. Volkswagen will make the purchases over a three-year period from Ford. Ford Motor acquired a majority stake in Argo in 2017.
Bryan Salesky, Argo’s Founder and CEO, and Reinhard Stolle, VP of Argo’s Munich division, co-wrote on Medium: “This news not only solidifies our well-capitalized position, but differentiates us as the only self-driving technology platform company with partnerships and commercial agreements for deployment across the U.S. and Europe.”
Ford execs added its own statement by saying the partnership will “better serve our future customers while improving cost and capital efficiencies.”
Ford announced in April that the pandemic made the company decide to pause its plans to launch its own autonomous vehicle services with Argo until 2022.
Salesky had previously worked for Google and Uber in the autonomous technology divisions of those companies.