Ford and Volkswagen have been working on a self-driving project called Argo AI. However, the project is now shutting down.

Ford announced on Wednesday that Argo AI, a promising self-driving car technology developer that raised billions of dollars from Ford and Volkswagen, is closing and dissolving. Ford blamed the project for its quarterly loss. Argo AI had been working on research and development of driver-assist systems as well as Level 4 autonomous driving technology since 2016.

Ford chose to cease sponsoring Argo and concentrate instead on its driver-assistance technology when it was unable to secure more funding from new investors. Ford reported an $827 million net loss for the third quarter as a result of a $2.7 billion non-cash, pretax impairment on its Argo investment.

Supporters of the technology did not realise how difficult it would be to develop commercially viable autonomous vehicles. The funding cuts highlighted the uncertain outlook for the fledgling industry, which is facing major technical challenges as it works to make self-driving cars a reality.

The only businesses that offer autonomous services that generate money at the moment are Waymo and Cruise. In several Phoenix suburbs, Waymo operates a 24-hour robotaxi service.

In addition to an autonomous delivery service with Walmart, Cruise has started a limited public robotaxi service in San Francisco that runs primarily at night when traffic is light. Additionally, Waymo is getting ready to launch its transportation service in San Francisco, and last week it announced it was expanding to Los Angeles. Amazon-owned business Zoox is also working on an electric robotaxi, but it has not provided a debut date for its service.

Before the release of its results, Ford’s stock on Wednesday closed at $12.82 in New York with little change.

 

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