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31 07 2018 03

Ford Motor Company recently announced the formation of Ford Autonomous Vehicles LLC, a subsidiary "charged with accelerating its AV business to capitalize on market opportunities". The entity, "which is structured to take on third-party investment", begins life as a wholly-owned subsidiary of Ford Motor Company. Indeed, Ford expects to invest $4 billion dollars in the entity. But outside investment would put at least part of its ownership in separate hands.

This model is similar to Ford's approach at Argo AI, a self-driving car software startup in which Ford committed to investing one billion dollars over four years. General Motors similarly opened its Cruise subsidiary to a $2.25 billion investment by Softbank.

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