Argo AI, the American autonomous vehicle start-up, has announced the termination of its business relations with major investors Ford and Volkswagen. The termination was announced because of the failure of Argo AI to generate business and get further investment.
Argo AI propelled into the Autonomous Vehicle (AV) scene in 2017 following a $1 billion investment from Ford. Until the shutdown, both Ford and VW had invested $2.6 billion into the AV start-up. American ride-hailing company Lyft had a 2.5% stake in Agro AI, which used its technology for robotics.
“In coordination with our shareholders, the decision has been made that Argo AI will not continue on its mission as a company,” Argo spokeswoman Catherine Johnsmeyer said in a statement.
“Many of the employees will receive an opportunity to continue work on automated driving technology with either Ford or Volkswagen, while employment for others will, unfortunately, come to an end.”
The company had anticipated launching autonomous vehicles across car markets by 2021. Unable to fulfil the set target and failing to raise any further funding, Agro AI burnt a hole in Ford and VW’s pockets.
However, the technology that Argo AI had developed until now will be divided among its primary investors Ford and VW. The structure of this division has not been revealed yet.
VW said that it will use Argo AIs software unit Cariad to forward the development of automated and autonomous driving with Bosch and Horizon Robotics in the future.
“We are incredibly grateful for the dedication of the Argo AI team, and so proud of our achievements together,” said Argo CEO Bryan Salesky and President Peter Rander.
“The team consistently delivered above and beyond, and we expect to see success for everyone in whatever comes next, including the opportunities presented by Ford and VW to continue their work on automated driving technology.”
Before coming to a seemingly hasty end, Argo AI had made tremendous progress in the AV sector. It has tested self-driving Ford Fusions and Escape Hybrids on public roads in several U.S. cities, including Detroit, and ID Buzz vehicles in Germany.
It had also launched pilot programs with companies like ride-hailing apps Lyft Inc. and Walmart Inc. Last month, it announced several software products around AV technology to support commercial delivery and robot taxi operations, according to The Detroit News.
