Volkswagen to work with Mobileye on automated driving after Argo exit - sources
Reuters
Published Oct 27, 2022 11:31
Updated Oct 27, 2022 12:13
By Jan Schwartz
BERLIN (Reuters) -Volkswagen plans to expand its cooperation with Intel (NASDAQ:INTC)'s Mobileye to include its automated driving program after Wednesday's decision to no longer invest in self-driving startup Argo AI, two sources familiar with the plan told Reuters on Thursday.
Mobileye, which develops autonomous driving technologies, already cooperates with VW's software unit Cariad.
"If you have obtained good results with one partner, it makes sense to work with them in other fields as well," said one of the sources.
Volkswagen (ETR:VOWG_p) declined to comment.
Volkswagen's and Ford Motor (NYSE:F)'s exit from Argo came after three years of joint efforts on the development of automated driving systems and investments of more than $3 billion, highlighting the cost pressure automakers face in that field.
While Ford took a $2.7 billion non-cash pre-tax impairment on Argo, VW might have to write down more than one billion euros ($1.00 billion), a source familiar with the company said.
Israel-based Mobileye went public this week, being valued at more than $20 billion. Chief Communications Officer Dan Galves said earlier this week that based on its design wins with automakers, the company's assisted driving systems would be deployed in 270 million cars by 2030.
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Written By: Reuters
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