Argo AI has room for yet another partner - in Asia

Published Jul 16, 2019

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INTERNATIONAL - Argo AI, the self-driving start-up that just sealed a $2.6 billion (R36bn) investment from the world’s biggest carmaker, says there’s room in its partnership with Volkswagen and Ford for another manufacturer to fill a void in its global footprint in Asia. 

Argo, founded by veterans of Uber Technologies and Alphabet’s Waymo autonomous-driving unit, will count Ford and VW as its two biggest investors. 

Ford in 2016 pledged $1bn in funding, while its German rival joined in with the deal announced on Friday. 

The automakers will have equal stakes in Argo and together will own a substantial majority of the start-up. Argo is open to partnering with another automaker, CE Bryan Salesky said in an interview. 

He said Argo’s $7.25bn valuation will attract outside investors, similar to the investment SoftBank Group made in General Motors’s Cruise. 

“We’ve got a strong global player, strong in Europe with VW and Ford being strong in the US. A third player is absolutely possible,” Salesky said. “And we would again look for the same thing. We’d want it to be a strategic relationship.” 

Ford generates more than 60 percent of its revenue in the Americas, and less than

10 percent in the Asia-Pacific region, based on data compiled by Bloomberg. 

BLOOMBERG 

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