Ford takes $2.7 billion hit as it drops efforts to develop full self-driving cars

 

 

Ford loses $2.7 billion as a result of abandoning its efforts to create fully autonomous vehicles.

Ford is effectively abandoning a project to create its first fully autonomous vehicle, and the decision will cost the carmaker $2.7 billion.

The business, which invested $1 billion in the self-driving car technology company Argo AI in 2017, stated on Wednesday that it would stop provide financial assistance for Argo AI.

According to CNN Business News, Ford will focus on developing a lower level of automated driving technology internally rather than having Argo create Level 4 or L4 technology, which is used in vehicles without steering wheels, brakes, or accelerator pedals.

The level it will now pursue on its own, known as Level 3 or L3, allows a driver to not pay attention to the road in certain conditions, such as on the highway, but it would expect a driver to be aware enough to quickly take control of the car if needed.

The decision will mean that Argo AI will shutdown. And the drop in value of Ford’s investment in Argo caused it to take a $2.7 billion charge in the just-completed third quarter. That resulted in an $827 million loss in the period.

Even excluding the special charges for Argo and other items, Ford reported adjusted earnings per share of 30 cents, a slide from the 51 cents it earned on that basis a year ago, but a slight improvement over the 27 cents forecast by analysts surveyed by Refinitiv.