Freshfields Leads $ 2.6 Billion Volkswagen-Ford Driving Investment


Volkswagen and Ford have joined forces to invest in American automotive technology company Argo AI.

Volkswagen and Ford have joined forces to invest in American automotive technology company Argo AI.

The two auto giants first announced a partnership to sue Argo AI in July last year, with the intention that the collaboration would lead to the introduction of autonomous vehicle technology in the United States and in Europe.

The transaction closed on June 1, 2020. It follows Clifford Chance advising Volkswagen on a $ 4 billion investment bond offer in May, around the same time, Ford was making its the largest bond offer ever, calling on his colleague at international law firm Shearman & Sterling.

Under the terms of the transaction, Volkswagen will provide capital to Argo AI, and Volkswagen’s Autonomous Intelligent Driving business has been merged into Argo AI as one of its subsidiaries at its European headquarters in Munich.

The trio’s collaboration will improve cost and capital efficiency, with Ford Autonomous Vehicles CEO and Ford Motor Company Vice President John Lawler saying, “As the uncertainty of today’s business environment” hui has created challenges for partnerships and investments in the autonomous driving space, this collaboration remains on track and will be a positive development for all involved.

He continued: “We are committed to spending more than $ 4 billion by 2023 for the development of our autonomous driving service. A large part of this investment is devoted to the development of the autonomous driving system. With Volkswagen’s investment in Argo AI, we will now share the cost of developing Argo AI technology.

In addition to the shared development costs, the joint venture in Argo AI is a large-scale enterprise with a large geographic scope, “important factors in the development of a robust and cost-effective autonomous driving system,” Lawler said.

As companies share the Argo AI platform, Ford and Volkswagen will continue to operate independently, creating their own autonomous driving services.

Lawler concluded: “Investing and creating the right customer experience is even more important now, because the Covid-19 virus has impacted everything – from the way we work to the way we buy. “

Freshfields’ advisory team consisted of lawyers in its offices in Washington, DC and New York, Berlin, Düsseldorf, Munich and Vienna.

The investment follows that of Ford temporary closure production in its international markets consolidates manufacturing sites in India, South Africa, Vietnam and Thailand in March, when coronavirus lockdown measures were in their infancy.

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