Ford and Volkswagen are pulling out of startup Argo AI, writing off billions on their stake in bringing autonomous mobility services to cities.
Companies are causing a stir with this news because it highlights problems in technical development.
It has long been clear that the upper levels of automated driving, "Level 4" and higher, can only be achieved with much greater effort than initially thought.
Billions more have to be invested, with the risk that competitors like Google will make faster progress and that their own systems will ultimately not be competitive.
Ford is now limited to less demanding goals and wants to buy the technology if necessary.
VW, on the other hand, continues to fight, albeit with a different partner.
Despite all the turbulence, the end of Argo AI also holds opportunities for Wolfsburg.
An intensified partnership with the specialist Mobileye, which is now apparently intended to fill the gap, will help to leverage stronger synergies.
Because this partner is already deeply integrated into the development of VW and its software division Cariad, unlike Argo AI, whose work ran in parallel and had few overlaps.