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Partnerships not only between companies, but also with startups: The Volkswagen and Ford case

There have been breakthroughs in the discussions, including a possible framework for Volkswagen to cooperate and invest in Argo AI, Ford’s startup for autonomous vehicles, people familiar with the matter said. They asked not to be named, because the talks are confidential. The automakers would have discussed an approximate valuation for the company of $ 4 billion, said one of the persons.

Volkswagen + Ford

Volkswagen continues constructive talks with Ford, said a spokesman for the Wolfsburg car maker and declined to comment more closely. A spokeswoman for Ford said the discussions would continue and have been productive in a number of areas.

A partnership for autonomous technology would build on an agreement reached in January for a joint production of commercial vehicles. The companies found common ground on a structure on Thursday to bring self-driving cars to market together. Volkswagen, the world’s largest automaker, and Ford would create a global giant in the field of self-driving vehicles and compete with rivals such as Waymo of Alphabet and General Motors Co. subsidiary GM Cruise.

“The chances here are considerable,” said Michelle Krebs, chief analyst at Autotrader. “You get economies of scale, and VW has an immense global footprint and breadth of product”.

Is the agreement even close?

An agreement could be closed within a few months, although much remains to be clarified and discussions still fail, the people said after a meeting at Ford headquarters in Dearborn, Michigan.

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