Volkswagen Group and Ford Motor Co. are expanding their budding alliance to collaborate on development of electric and autonomous vehicles, with the German automaker investing $2.6 billion in cash and assets in Argo AI, and Ford agreeing to use VW’s flexible electric vehicle platform for a future battery electric vehicle in Europe.
VW’s supervisory board signed off on the expanded partnership during a meeting Thursday in Germany. VW CEO Herbert Diess and Ford CEO Jim Hackett appeared together at a Wall Street hotel in New York on Friday to brief investors and journalists on the latest collaboration.
The two automakers agreed in January during the Detroit auto show to work together on development of midsize pickups and commercial vans for use outside North America. At the time, both Diess and Hackett said further collaborations were under discussion.
Under the terms announced Friday:
• Volkswagen will invest $2.6 billion in Argo AI, with $1 billion in direct funding, and VW’s…