Ford Announces New Self-Driving Car Division, Makes $4 Billion Investment Into Business

Ford Motor Co. on Tuesday introduced Ford Autonomous Vehicles LLC, a new sector that will house its self-driving vehicles. The American automaker has committed to invest $4 billion into its new autonomous car subsidiary through the year 2023.

The new LLC will house the company’s self-driving systems integration, autonomous car research and business development and business strategy teams, the company said in a news release. Ford will base its new business out of the company’s campus in Corktown, Michigan.

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

The $4 billion that Ford plans to invest in its antonymous vehicles include the $1 billion it already has invest in Argo AI, a Pittsburgh-based startup Ford partnered with for the development of its self-driving technology. Ford has since stated that it would bring to market its first autonomous car without pedals and a steering wheel by 2021.

"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."

News of Ford’s plans to head into the self-driving business comes as rival automaker General Motors announced its acquisition of Cruise Automation in May. In 2016, GM paid an estimated $1 billion to acquire the San Francisco-based self-driving startup.

In June, Ford announced it had purchased Michigan Central Station in Detroit looking to transform the structure into a hub for its autonomous and electric vehicles while rebuilding the surrounding Corktown neighborhood. The company also said it plans to house 2,500 Ford employees in the space and that it will utilize the rest for residential housing.