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