The high cost involved in developing self-driving cars and electric vehicles has led to teaming up of two fierce rivals in the automobile industry. The German auto giant Volkswagen and US auto giant Ford announced that the two companies will work together on a $7 billion project to develop and market electric and self-driving vehicles.
Ford has been criticized in the past for not having a proper EV strategy and VW has its own share of challenges in the EV space but now both the companies have the opportunity to become world leader in the EV and self-driving vehicles technology.
VW is expected to invest $2.6 billion in capital and assets in Ford's self-driving unit Argo AI to market new-technology vehicles in the US and European countries. Ford would use VW technology to market at least one high-volume EV to European markets by 2023.
Speaking on the occasion Ford Chief Jim Hackett said that working with Argo AI on this important technology would allow them to deliver supreme capabilities, scale and market reach. The teaming up with VW will allow Ford to get access to motors, batteries and other components to develop their new electric car called ID.3 which would be priced around 30,000 Euros and is expected to be ready by next year.
Ford would use VW's EV architecture -- the "Modular Electric Toolkit" -- to deliver more than 6 lakhs vehicles over 6 years starting in 2023 with a new Ford model for European consumers, while VW expects to produce 15 million cars over the next decade.
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