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Why Ford And VW Shut Down Their Multi-Billion Dollar Self-Driving Project

Ford invested $1 billion in self-driving startup Argo AI in 2017, and Volkswagen joined with a $2.6 billion investment 2 years later. It was an attempt to match rivals such as Uber, Tesla and Google. At its height, Argo AI was reportedly valued at $12.4 billion. But in 2022 Argo AI shut down. Ford said the it didn't attract new investors, and that profitability was "a long way off". Both automakers are spending big in electrification - $50 billion in Ford's case and more than three times that in VW's case. VW still pursued autonomous driving projects for commercial uses, and Ford focused on more modest L2 and L3 driver assistance technology. Chapters: 0:00 — Introduction 01:21— Argo A.I. 04:14 — Why did it fail? 08:24 — Mobility doesn't pay 10:33 — The future Producer: Robert Ferris Editor: Jacob Harrell Senior Managing Producer: Tala Hadavi Graphics: Jason Reginato, Christina Locopo, Mallory Brangan » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC Why Ford And VW Shut Down Their Multi-Billion Dollar Self Driving Project