Startup Argo AI Autonomous Vehicle Disbands, Partly Transfer of Employees and Parts to Volkswagen and Ford

JAKARTA - Autonomous vehicle startup Argo AI will close their factory operations. Employees and spare parts will be absorbed by its main support companies, Ford Motor Co and Volkswagen AG. This news was first reported by TechCrunch on Wednesday, October 26 citing a source familiar with the matter.

Argo employees were told that some of them would accept offers from the two automakers. But TechCrunch reports that it's not clear how many employees will be transferred to Ford, Volkswagen or lose their jobs. Ford did not immediately respond to a Reuters request for comment.

Argo AI in July said it had laid off about 150 employees for making adjustments to its business plan. They still have over 2.000 employees globally after the layoffs.

Started in 2016, Pittsburgh-based Argo AI developed the technology behind driverless vehicles. They have raised an investment fund of about 3.6 billion US dollars, mainly from Ford and Volkswagen.

Meanwhile Volkswagen AG on Wednesday also stated that they are no longer investing in Argo AI. Instead they are now concentrating their automated driving efforts on existing partnerships with Bosch and Horizon Robotics in China.

Volkswagen commercial vehicles will explore partnerships with a new partner who will be named soon, a VW spokesperson said in a statement. Especially with the prototype for his electric van, ID. Buzz, which is currently in the pilot phase.

Hasil pertama dari kemitraan antara unit perangkat lunak Volkswagen Cariad dan Bosch, yang diumumkan pada Januari tahun ini, direncanakan untuk diluncurkan tahun 2023.

Volkswagen mengungkapkan investasi mereka sebesar 2,6 miliar dolar AS di Argo AI, startup swakemudi yang berbasis di Pittsburgh, pada Juni 2020.

Investasi tersebut berarti startup tersebut dikendalikan bersama oleh produsen mobil Jerman dan Ford Motor Co, yang melakukan investasi awal di Argo AI tak lama setelah didirikan.

"Volkswagen bekerja sama dengan Argo AI untuk memungkinkan peluang kerja lebih lanjut bagi karyawan dan terus mengembangkan proyek yang menjanjikan dalam mengemudi otonom. Semua kerja sama lebih lanjut dengan Ford tetap tidak berubah," kata pernyataan Volkswagen.