EPOM 401 2020 Summer Term M7 Current Events - Must Watch!
Table of Contents
- Introduction
- What is Argo?
- The Investment by Volkswagen and Ford in Argo
- Ford and Volkswagen's Plans for the Future
- The Benefits for Ford
- The Benefits for Volkswagen
- Impact on Stakeholders
- Other Benefits of the Joint Venture
- Volkswagen's Past Issues and Innovation
- Conclusion
Introduction
In this article, we will discuss the recent investment made by Volkswagen and Ford in an autonomous vehicle company called Argo. We will explore what Argo is all about and how this partnership will impact the future of autonomous vehicles. We will also analyze the benefits of this collaboration for both Ford and Volkswagen, as well as examine the potential impact on stakeholders. Finally, we will discuss the innovations driven by Volkswagen's past issues and conclude with a broader understanding of this joint venture.
What is Argo?
Argo is a company founded in 2017 by former Google and Uber veterans who worked on respected automated driving programs. Argo's main goal is to design and develop automated driving systems that can be incorporated into Current vehicles. By integrating Argo's autonomous systems into their vehicles, automakers can transform their existing models into autonomous vehicles. This is a significant development, considering the direction the automotive industry is headed towards.
The Investment by Volkswagen and Ford in Argo
In 2017, Ford invested a substantial amount of money in Argo, helping drive the company's progress in developing their own autonomous vehicle fleet. Then, in July 2019, Volkswagen joined the investment by matching Ford's investment amount. As a result, both Ford and Volkswagen now hold minority stakes in Argo, but together, they have majority control of the company. This collaboration is a significant step towards fostering innovation in autonomous vehicles.
Another crucial aspect of this partnership is Volkswagen allowing its AI division, the Autonomous Intelligent Driving (AID) group, to join forces with Argo. This collaboration creates a co-inventor situation, enabling the development of autonomous vehicles. By combining the expertise and resources of both companies, they aim to establish themselves as industry leaders in this emerging technology.
Ford and Volkswagen's Plans for the Future
Initially, Ford aimed to launch its autonomous vehicle fleet by 2021. However, they have since revised their timeline to 2022. On the other HAND, Volkswagen's exact launch timeline remains uncertain, but they are planning for a potential launch in 2022 or 2023. Despite the timeline differences, both companies recognize the immense potential of autonomous vehicles in various sectors.
By 2025, it is expected that at least 300,000 autonomous vehicles will be deployed for goods delivery across Europe and the world. This market segment is projected to grow significantly over time. In addition to goods delivery, autonomous vehicles will also be utilized for other purposes such as Cargo transportation and robot taxi services. Ford and Volkswagen aim to capitalize on this market by developing innovative solutions through their alliance.
The Benefits for Ford
Ford stands to gain numerous benefits from this collaboration. Firstly, they will have access to Volkswagen's developed model of an electric drive platform. This knowledge transfer will enable Ford to leverage Volkswagen's expertise and Apply it to their own vehicles, enhancing their electric vehicle offerings.
Furthermore, Ford will gain recognition in European markets, where Volkswagen already has a strong presence. By partnering with Volkswagen, Ford aims to increase their sales and expand their market share in Europe, particularly in the SUV and pickup truck segments. This joint venture provides Ford with an opportunity to learn from Volkswagen's successful vehicle platforms and incorporate those learnings into their own product line.
The Benefits for Volkswagen
Volkswagen benefits from this joint venture by gaining advanced entry into the autonomous vehicle market, primarily in Europe. As this market is predicted to grow exponentially, being at the forefront of autonomous vehicle technology in Europe provides Volkswagen with a competitive edge.
Additionally, Volkswagen is able to repair and strengthen its reputation, which suffered following the emissions scandal a few years ago. By partnering with a reputable and environmentally conscious company like Ford, Volkswagen can regain the trust of their customers, employees, and stakeholders. This partnership also showcases their commitment to environmental protection and opposition to regulatory rollbacks.
Impact on Stakeholders
The investment and collaboration between Ford, Volkswagen, and Argo have significant implications for various stakeholders. Employees of the companies involved can expect increased job opportunities and exposure to cutting-edge technology. Shareholders may benefit from the potential growth and profitability resulting from the autonomous vehicle industry's expansion.
Customers will have access to technologically advanced and environmentally friendly vehicles, thereby enhancing their overall driving experience. Governments and regulatory authorities must adapt to the evolving landscape of autonomous vehicles and establish appropriate regulations and guidelines.
Other Benefits of the Joint Venture
Apart from the aforementioned benefits, this joint venture allows both Ford and Volkswagen to pool their resources, reducing development costs for autonomous vehicle technology. By sharing the financial burden, they can allocate their resources more efficiently and accelerate innovation.
Furthermore, the partnership provides a global expansion opportunity for both Ford and Volkswagen. Argo, being the first autonomous vehicle company with a strong presence in North America and Europe, allows both companies to enter new markets and explore opportunities for growth and market dominance.
Volkswagen's Past Issues and Innovation
Volkswagen's previous issues, particularly the emissions scandal, have likely played a role in driving their pursuit of innovation through this joint venture. By partnering with Ford and investing in autonomous vehicle technology, Volkswagen aims to not only regain public trust but also showcase their commitment to the environment and sustainable transportation solutions. This partnership serves as a platform for Volkswagen to showcase its dedication to clean technology and gain recognition globally.
Conclusion
The investment made by Volkswagen and Ford in Argo represents a significant step towards the future of autonomous vehicles. This joint venture allows both companies to leverage their respective expertise, reduce development costs, and accelerate innovation. Ford stands to benefit from Volkswagen's electric drive platform and gain recognition in European markets, while Volkswagen gains advanced entry into the autonomous vehicle market and works towards repairing its reputation. This collaboration has a positive impact on various stakeholders, fosters global expansion, and paves the way for a new era of autonomous vehicle technology.