Investing.com – Ford rose in midday trade on Friday after it announced Volkswagen (DE:) was investing $2.6 billion into its self-driving unit Argo.
The investment in the startup gives Argo a valuation of more than $7 billion, making it one of the highest valued autonomous vehicles companies.
VW is buying $500 million shares from Ford and is investing $1 billion in cash, as well as contributing to its European self-driving unit.
Ford acquired a majority stake in the Pittsburgh startup in 2017 and will now share a minority stake with VW and Argo’s founders.
“While Ford and Volkswagen remain independent and fiercely competitive in the marketplace, teaming up and working with Argo AI on this important technology allows us to deliver unmatched capability, scale and geographic reach,” Ford President and CEO Jim Hackett said.
Ford (NYSE:) gained 2.2% in midday trade, while rival Tesla (NASDAQ:) rose 1.3% and General Motors (NYSE:) was up 1.9%.
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