Amazon (NASDAQ: AMZN) decided to come to the rescue of Volkswagen (OTCPK: VWAGY ) and Ford (F) self-driving Argo AI.
According to Bloomberg, Amazon has made plans to use the startup’s technology in delivery vehicles, to promote. The existing agreement is with Rivian Automotive (The price of RIVN shares). According to the site, former VW CEO Herbert Diess traveled to the US to try to persuade Amazon founder Jeff Bezos to join the partnership. However, the deal fizzled out amid uncertainty over the administration and the split of interest between the e-commerce king and the two automakers.
People familiar with the matter cited by Bloomberg added that Amazon was not happy with the cost of Argo’s technology. Amazon (AMZN) under Andy Jassy has shown a strong focus on cost control, closing unprofitable businesses and cutting thousands of jobs.
Ford recorded a $2.7B tax impact on its Argo AI investment in its Q3 report.