We have written many news about Argo AI so far . But now, Ford’s autonomous car unit Argo AI is shutting down. If you remember, Volkswagen also invested $2.6 billion in Argo AI in 2020 . Allegedly, after the shutdown, some employees of the company will be included in the teams of Ford and Volkswagen. It was said that it was not specified who would receive royalties from which companies.
As the company closes, employees were also told that they would receive a severance package that includes insurance and two separate bonuses. At this point, it should be reminded that the company has more than 2,000 employees. Argo AI said in July it had laid off about 150 of its employees as it made adjustments to its business plans.
Ford announced in its third-quarter earnings report that it made a strategic decision to shift its resources from developing autonomous vehicle technology to developing advanced driver assistance systems. The company also said it recorded a non-cash pre-tax impairment of $2.7 billion on its investment in Argo AI, resulting in a net loss of $827 million for the third quarter. It is said that Argo AI’s inability to find new investments lies behind this decision. In summary; Argo AI was unable to find additional funding from new investors, so Ford decided to stop funding and focus on its own driver assistance technology instead.
Right now, with the withdrawal of Argo AI from the market, it is possible to say that a dual race has begun between Waymo and Cruise . Because both companies have autonomous services and generate income from them. However, autonomous driving technology is in more and more demand every day. For this reason, it will be inevitable that existing players will gain value and new players will enter the market in a short time.