Published on August 18th, 2020 | by Subhash Nair0
Ford Gets New CEO and US$2.6b from VW for Argo Partnership
The automotive industry has just as many rivalries as there are alliances and it looks like the Ford-VW partnership is shaping up to be rather strong. Over the last few months, we’ve learnt that Volkswagen would be looking to Ford for their next generation Amarok pick-up truck.
Late last month, this alliance got a step closer. Reuters reported that Volkswagen have completed its US$2.6 billion investment in Ford’s self driving unit, called Argo. As a result, Ford expects a pre-tax profit of between US$500m and US$1.5b for the third quarter of 2020.
Besides that, it also looks like Ford will replacing their relatively fresh CEO, Jim Hackett with Jim Farley. Jim Hackett was considered a bit of an oddball choice as Ford’s CEO, coming from a background outside of the auto industry. He was halfway through a restructuring plan for Ford when it was decided different leadership would be necessary.
One of his more controversial moves was to supposedly axe all cars from Ford’s future portfolio except the Mustang, and concentrate on a crossover/SUV future. There has been some degree of reversal in this strategy, but it remains to be seen what Ford’s plans for cars will be like in the near future. Perhaps this Volkswagen partnership will see platform sharing for non-SUV products if it pans out?
Jim Farley, the incoming CEO, will take his post in October. Farley spent most of his career with Toyota in the USA, but has been with Ford since 2007. And yes, he’s related to the late comedian Chris Farley.
Argo AI is a self-driving technology platform company. We build the software, hardware, maps, and cloud-support infrastructure that power self-driving vehicles. Our purpose is to make getting around cities safe, easy, and enjoyable for all.
We are partnering with leading automakers to integrate our technology into their vehicles — so that those vehicles can enable new ride sharing and delivery services that do not require the aid of a human driver.
Our team’s extensive experience in robotics and artificial intelligence complements our partners’ expertise in manufacturing high-quality vehicles at scale. With a focus on tight integration and attention to detail, safety isn’t an afterthought, it’s designed into our product from Day One. That’s what sets us apart.