Ford and Volkswagen recently pulled the plug on the autonomous vehicle tech startup Argo AI last week. Now, the two automakers have put Argo AI on sale, hoping to recoup some money from billions they had invested.
Argo Lidar, Two More Items
Sources privy to the shutting down of the tech startup said there are at least three major items Ford and VW wanted to dispose of.
Here are three major items the two automakers are offering to sell:
1. Argo Lidar
In 2017, Argo acquired Princeton Lightwave, a startup specializing in lidar, a shorthand for light detection and ranging (via CNET). It is also called laser imaging, detection, and ranging that is considered in the FSD sector as the “eyes” of the vehicle.
Industry players considered lidar as the major piece in the puzzle with its capacity to measure distance so that self-driving vehicles can safely navigate the environment.
The acquisition was hailed as a major step for Argo in its autonomous vehicle program.
The technology, Argo AI CEO Bryan Salesky said, will help the company to double up on the range and resolution to attain self-driving mobility, especially in urban environments.
Ford bankrolled the lidar acquisition of a nascent Argo at the time.
Later on, the Argo team developed a medium- and long-range lidar capable of seeing some 400 meters away.
In May 2021, Salesky told TechCrunch the company developed lidar sensors at a lower cost and manufactured them at scale. These two factors are crucial for any company in the autonomous vehicle industry.
2. 80 Employees
Argo AI’s shutdown left some 2,000 Argo’s workforce without jobs. Ford and VW are reportedly keen to employ the employees.
Both automakers invested some $3.6 billion in Argo, some $2 billion in cash, and $1.6 billion in value when the startup tech company took VW’s autonomous driving unit. After the takeover, Argo renamed the unit into Argo AI GmbH.
The German automaker is planning to take its employees again at Argo AI GmbH in Munich.
VW had also offered jobs to former Argo employees in the United States. That means the German automaker may have plans to set up US operations.
3. Lidar Tech
Several sources said LG Innotek might acquire Argo’s lidar sensors. The South Korean electronics company had manufactured Argo’s lidar units before the shutdown.
It is likely that LG Innotek may jump at buying the sensors it has manufactured for Argo AI.
Waymo And Tesla
Not all companies use lidar sensors in their autonomous vehicles.
Google’s Waymo is developing lidar sensors. Some had opted to buy available lidar from other companies such as Velodyne.
But Tesla is not into the lidar conversation.
The electric carmaker’s own self-driving cars do not need lidars to navigate the streets. Current Tesla models of AV run on an Autopilot system without lidar emitters.
Driver-Assisted Technology
Argo AI’s shutdown highlighted the state of the AV sector.
Ford’s decision to abandon its interest in the AV startup tech company showed the carmaker’s pragmatism in rechanneling its resources to driver-assisted technology rather than the highly volatile AV sector.
A profitable AV on a commercial scale remains a long shot, Ford CEO Jim Farley said.
While Ford and VW jointly walked away from Argo, both carmakers continued their joint ventures on electric vehicles in Europe and the United States.
Keyword: Ford, Volkswagen Put Argo’s AI Lidar on Sale