Automotive giants Volkswagen (VLKAF) and Ford (F - Get Report) will announce details of a massive joint venture that will see Volkswagen inject $2.6 billion in capital and infrastructure into Ford's self-driving unit, Argo AI.
Citing sources, Reuters reported on Friday that Volkswagen will contribute $1 billion in capital and $1.6 in own business activities, and VW and Ford will be equal stakeholders of the venture. Ford became the majority shareholder of Argo in early 2017 after it invested $1 billion in the startup.
The companies have scheduled a joint press conference for 8 a.m. ET in New York on Friday.
The joint venture comes as several of the world's biggest automakers team up to try to stay ahead of the rapidly changing technology landscape in the automotive industry.
Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and seeking outside investors to work on developing autonomous vehicles.