Autonomous driving startup Argo AI, backed by Ford and Volkswagen, is shutting down, as Ford admits fully self-driving vehicles have “a long way to go”.
“We are optimistic about a future of L4 ADAS, but fully autonomous vehicles that are profitable at scale are far from coming and we won’t necessarily create that technology ourselves,” said Director Ford executive Jim Farley said.
John Lawler, chief financial officer of Blue Oval, added that mass deployment of such vehicles is “five years away”.
It posted a third-quarter loss of US$827 million (AU$1.27 billion) which it attributed largely to the closure of the US startup, recording non-cash losses US$2.7 billion (AU$4.15 billion) on investment in certainty.
It will pivot from investing in Argo AI’s Level 4 autonomous driving technology to its own in-house developed Level 2+ and Level 3 technology such as BlueCruise and ActiveGlide features – though Mr. Farley’s comments suggest that Ford may at some point buy Level 4 technology from another company.
“During this quarter, Ford concluded that the large-scale commercialization of the automotive industry’s most profitable advanced driver-assistance system Level 4 would exceed initial projections – but the Customer growth and enthusiasm for the benefits of L2+ and L3 ADAS ensure the company’s short-term aspirations are met and its commitment in those areas,” Ford said in its third-quarter earnings guidance. mine.
Ford first invested in Argo AI in 2017 and aims to bring the Level 4 technology “widely to market” by 2021.
The company said it “will hire talented engineers from Argo AI when that company is struggling”.
Volkswagen has also committed to working with the start-up “to continue to provide jobs for employees and to further develop the most promising projects in the field of autonomous driving”.
Also stopping investment in Argo AI, Volkswagen will instead rely on its software division, Cariad, to drive the development of Level 3 autonomous driving technology.
The aim is to provide functions for vehicles belonging to the Volkswagen Group brand groups that allow the driver to clearly take his hands off the steering wheel.
“These are advanced driver assistance systems, known as level 2 systems, for the city, country and motorway, in which the driver is fully assisted by the vehicle and a system in The car then assumes all driving duties on the highway (SAE level 3).
“The first functions will be rolled out in 2023.”
Cariad notes that Cariad will handle the development of “partial driving functions and high automation” up to Level 4 autonomy, and will continue to work with Bosch. In the future, it will also work with Horizon Robotics in China.
Deployment plan Autonomous ID. Buzz everyone in motion almost unaffected.
It hopes customers by 2025 will be able to use the car-sharing service MOIA to order an autonomous ID. Buzz in Hamburg in 2025.
Volkswagen Commercial Vehicle also said it will soon announce plans to expand cooperation to develop technology for autonomous vehicle fleets.
“In coordination with our shareholders, we have made the decision that Argo AI will no longer carry out its mission as a company,” Argo said in a statement.
“Many employees will receive the opportunity to continue working on autonomous driving technology with Ford or Volkswagen, while jobs for others will no longer be available.”
TechCrunch reported generous severance packages being offered to people not employed by Ford or Volkswagen. It has more than 2000 employees globally, despite laying off about 150 people in July.
Founded in 2016, Argo AI received a US$1 billion ($1.54 billion) investment from Ford and has since raised a further US$2.6 billion ($4 billion). la Australia) – mostly from Ford and Volkswagen.
It recently made the robot available for use through car-sharing company Lyft in Austin, Texas, and has also launched pilot programs in Miami and Pittsburgh.
