Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Canadians Abroad
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Dealer Best Practices
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ferrari
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Fiat Chrysler
      • Jeep
      • Fiat
      • Lancia
      • Maserati
      • Ram
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • VinFast
    • Toronto Auto Show
  • Opinion
    • Blogs
  • Video
  • Podcasts
  • EVENTS & AWARDS
    • 2022 Auto News Canada All-Stars
    • 2022 Canadians To Watch
    • Notable Champions of Diversity
    • Best Dealerships To Work For
    • Canada Congress
    • Retail Forum: Dealer Discussions
    • Leading Women Roundtables
    • Embracing Diversity Roundtable
    • Embracing Diversity Roundtable Volume 2
    • EVs Decoded
    • 2023 Best Dealerships To Work For nominations
  • Jobs & Classifieds
  • +MORE
    • IN THE DRIVER'S SEAT
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • PEOPLE ON THE MOVE
    • COMPANIES ON THE MOVE
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
    • PUBLISHING PARTNERS
MENU
Breadcrumb
  1. Home
  2. Canada
July 24, 2018 01:00 AM

Ford commits US$4 billion to autonomous vehicles, forms new subsidiary

Michael Martinez
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    The US$4 billion in AV spending includes US$1 billion that Ford has committed to investing in Argo AI, a Pittsburgh startup that has become its partner in self-driving system development.

    DETROIT -- Ford Motor Co. on Tuesday said its investments in autonomous-vehicle development are expected to total $4 billion (all figures USD) through 2023 and that it has formed a subsidiary devoted to those efforts called Ford Autonomous Vehicles LLC.

    The subsidiary will be be based primarily at the campus Ford is creating in Detroit's Corktown neighborhood and led by Sherif Marakby, a Ford vice president who spent a year heading Uber's autonomous-vehicle program before rejoining Ford in 2017. It will have its own board of directors chaired by Marcy Klevorn, Ford's president of mobility.

    The new LLC will be the entity charged with fulfilling Ford's promise to launch a self-driving commercial vehicle at scale in 2021. It includes the automaker's self-driving systems integration, autonomous vehicle research and advanced engineering, AV transportation-as-a-service network development, user experience, business strategy and business development teams.

    "Ford has made tremendous progress across the self driving value chain — from technology development to business model innovation to user experience," Ford CEO Jim Hackett said in a statement. "Now is the right time to consolidate our autonomous driving platform into one team to best position the business for the opportunities ahead."

    Ford shares rose after the announcement, gaining 2.2 per cent to $10.70 in midday trading.

    The $4 billion in AV spending includes $1 billion that Ford has committed to investing in Argo AI, a Pittsburgh startup that has become its partner in self-driving system development.

    Ford Autonomous Vehicles LLC will hold the ownership stake in Argo AI that Ford received in exchange.

    Third-party investment

    The subsidiary is set up to take on other third-party investment and will be separate from Ford's Smart Mobility LLC, which handles new business opportunities such as its Chariot shuttles.

    Marakby, currently Ford's vice president for autonomous vehicles and electrification, has been given the title of CEO for the autonomous-vehicle unit.

    The automaker made several other organizational changes effective Aug. 1 as a result. Ted Cannis, Ford's global director for electrification, will lead Ford's electric-vehicle arm, known as Team Edison. Additionally, Ford said it is reorganizing its global operations division, headed by Joe Hinrichs, to include information technology as well as the company's global order-to-delivery system.

    Ford's chief information officer, Jeff Lemmer, will report to Hinrichs. And Hau Thai-Tang, Ford's executive vice president for product development and purchasing, will report directly to Hackett instead of Hinrichs.

    "The evolution of computing power and IT have helped bring great products to customers — from cars to tablets," Hackett said. "We can now harness this technology to unlock a new world of vehicle personalization, supply chain choreography and inventory leanness that rivals any industrial model in the world — and Joe's challenge is to help us redesign this system to do just that — while better serving customers and dealers and improving our overall fitness."

    The announcement follows Ford's recent purchase of Detroit's vacant Michigan Central Station, a century-old office tower it plans to convert into the hub of an urban campus dedicated to work on autonomous and electric vehicles. Ford opened an office near the depot earlier this year for about 200 employees that are part of Team Edison.

    RECOMMENDED FOR YOU
    2022 Year in Review
    Recommended for You
    BLOCKADE-MAIN_i.jpg
    2022 Year in Review
    Anti Abortion Rally
    Canadian auto writers urge automakers to snub anti-abortion U.S. states
    4 issues
    4 key issues the Canadian auto industry faces right now
    Achyut Jajoo, Rory Macleod
    Sponsored Content: Expert Insights: The Future of Connected Vehicles and Customer Experiences
    Digital Edition
    May 2023 Issue
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Now

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    1155 Gratiot Ave
    Detroit MI 48207

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ferrari
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Fiat Chrysler
          • Jeep
          • Fiat
          • Lancia
          • Maserati
          • Ram
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
        • VinFast
      • Auto Shows
        • Toronto Auto Show
      • Canadians Abroad
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Dealer Best Practices
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Video
    • Podcasts
    • EVENTS & AWARDS
      • 2022 Auto News Canada All-Stars
      • 2022 Canadians To Watch
      • Notable Champions of Diversity
      • Best Dealerships To Work For
        • 2023 Best Dealerships To Work For nominations
      • Canada Congress
      • Retail Forum: Dealer Discussions
      • Leading Women Roundtables
      • Embracing Diversity Roundtable
      • Embracing Diversity Roundtable Volume 2
      • EVs Decoded
    • Jobs & Classifieds
    • +MORE
      • IN THE DRIVER'S SEAT
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • PEOPLE ON THE MOVE
      • COMPANIES ON THE MOVE
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION
      • PUBLISHING PARTNERS