Autonomous tech developer Argo AI, backed by Volkswagen and Ford, is shutting down, with some parts of the company expected to be absorbed into the two automakers. The start-up had been engaged in research and development of driver-assist systems as well as Level 4 autonomous driving technology since 2016.
Editor’s Note: With the low cost VC money drying up and the realization setting in that Level 4 and 5 AVs are dreams that may never come true, if you don’t have an alternative market strategy such as improving the safety of cars with drivers, then you may become part of the rapidly approaching shake out in the AV industry. This is not going to be pretty.
From an article in Autoweek by Jay Ramey.
The decision is seen as being tied to growing losses for its two main automotive backers at a precarious time in the industry, collectively amounting to billions, as well as persisting uncertainty regarding the timeline for the commercial arrival of Level 4 technology. In many ways this uncertainty applies to all leading autonomous vehicle developers, including those that have fielded Level 4 vehicles on limited scales, but this doesn’t make the continued expenditures any less significant. This uncertainty extends both to the underlying technologies as well as the regulatory environment in the US and elsewhere when it comes to commercializing Level 4 technology.
“During the quarter, Ford concluded that the auto industry’s large-scale profitable commercialization of Level 4 advanced driver-assistance systems will be further out than originally anticipated—but development and customer enthusiasm for benefits of L2+ and L3 ADAS warrant dialing up the company’s near-term aspirations and commitment in those areas,” Ford said in announcing its third-quarter results.
Ford said it is moving its capital spending away from Level 4 technology in favor of Level 2 and Level 3 tech developed in-house. The automaker also noted that Argo AI had been unable to secure new outside investors to continue operations.
For the complete article on autonomous tech shut down CLICK HERE.
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