German car manufacturer Volkswagen AG has closed a $2.6 billion deal with the U.S. manufacturer of systems for self-driving cars Argo Al.
Under the terms of the agreement signed in July 2019, the European headquarters of Argo will be established on the basis of VW’s self-driving car development division in Munich, which was valued at $1.6 billion, said the head of the American company Bryan Salesky. In addition, VW will invest $1 billion in Argo.
The office in Munich was the first for Argo outside the United States. The company’s staff increased to about 1,000 employees.
VW became the second major car manufacturer to enter into a partnership with Argo. In 2017, the American Ford Motor Co. pledged to invest $1 billion over five years in a manufacturer of systems for unmanned cars.
Quotations of Volkswagen grew by 4.4% during the bidding on Tuesday.