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Volkswagen Will Infuse $2.6 Billion Worth Assets into Ford Autonomous Project

Carmaker Volkswagen will infuse $1 billion in the capital and $1.6 billion worth of assets into Ford’s (FN) self-driving unit, a source close to the matter said on Friday, because the two carmakers deepen a global alliance to share costs.

VW and Ford stated they have been in “exploratory talks” about an alliance to develop self-driving and electric vehicles and to enhance one another’s global production and sales footprints. They’re to announce particulars on Friday.

Volkswagen additionally plans to construct a multi-brand production plant in Turkey, German trade magazine Automobilwoche stated on Friday.

Ford already has a big plant in Golcuk, Turkey the place it builds the Ford Transit van, and supply informed Reuters that Volkswagen intends to utilize Ford’s production capacity in Turkey, to construct a VW van.

As a part of a broader deal set to be introduced on Friday, VW will turn out to be an equal stakeholder in Ford’s autonomous vehicles venture, the supply stated, marking the latest expertise alliance amongst world carmakers looking for to develop self-driving cars.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to take a position $4 billion till 2023 and has sought outdoors buyers to assist share the spiraling value of creating autonomous automobiles.

Ford and VW stated on Thursday they’d announce additional particulars a few world technology-sharing alliance settlement on Friday.

The collaboration may speed up the deployment timetables of each carmaker, which have stated they plan to place autonomous vehicles into operation in 2021.

In June, Volkswagen ended its partnership with Aurora solely days after the self-driving software begin-up firm introduced an alliance with Fiat Chrysler. Aurora additionally has partnerships with Hyundai Motor Co (005380.KS) and China’s Byton.