Summary
Ford Motor Company (F) announced a significant development regarding its investment in Argo AI, a company focused on autonomous driving technology. As of June 1, 2020, Volkswagen AG (VW) officially joined Ford in investing in Argo, a strategic move designed to accelerate the development of self-driving technology. As a result of this transaction, Ford has deconsolidated Argo AI from its financial statements, effective the same date. While the specific financial impact will be detailed in Ford's second-quarter 2020 results, the company anticipates recognizing a gain on its investment in Argo. This gain will be classified as a special item and is expected to positively impact Ford's reported earnings for the quarter.
Key Highlights
- 1Ford and Volkswagen AG (VW) have completed a transaction where VW is now investing in Argo AI alongside Ford.
- 2Effective June 1, 2020, Argo AI has been deconsolidated from Ford's financial statements.
- 3Ford expects to report a gain on its investment in Argo AI in the second quarter of 2020.
- 4The gain on the Argo AI investment will be treated as a special item.
- 5This partnership aims to accelerate the development of autonomous driving technology for both companies.