Ford Motor aim on spending $4 billion on autonomous vehicles by 2023

Share:

Ford Motor plans to spend $4 billion through 2023 in a newly created LLC dedicated to building out an autonomous vehicles business.

The automaker announced Tuesday it has created Ford Autonomous Vehicles LLC, which will house the company’s self-driving systems integration, autonomous-vehicle research and advanced engineering, AV transportation-as-a-service network development, user experience, business strategy and business development teams. The $4 billion spending plan includes a $1 billion investment in startup Argo AI .

The new LLC will be primarily based at Ford’s Corktown campus in Detroit and will hold Ford’s ownership stake in Argo AI, the company’s Pittsburgh-based partner for self-driving system development.

But the total planned spend of $4 billion has not. The investment figure, and Ford’s decision to create a new organization dedicated to all things autonomous vehicles, provides some clues to the automaker’s ultimate ambitions. Ford’s work on autonomous vehicles was scattered throughout the company, from product development and research departments to its marketing and planning organizations.

Its decision to bring all of these various pieces together suggests the company is evolving from research and testing toward an autonomous vehicle business. In short, it sees a path toward commercial deployment.

“Ford has made tremendous progress across the self driving value chain — from technology development to business model innovation to user experience,” said Ford CEO Jim Hackett . “Now is the right time to consolidate our autonomous driving platform into one team to best position the business for the opportunities ahead.”

Contentmiddlead


Ford plans to house 2,500 Ford employees, most from its emerging mobility team, in its new Corktown campus by 2022. The new campus will have space to accommodate 2,500 additional employees of partners and other businesses. The remaining 300,000 square feet will serve as a mix of community and retail space and residential housing.

No comments