Ford CEO Farley Discusses Key Business Reasons for the Shutdown of Argo AI

Shortly after the announcement of the closure of its self-driving subsidiary, Argo AI, Ford CEO Jim Farley participated in the company's Q3 earnings call to explain this strategic shift. "Over a hundred billion dollars has been invested in the promise of Level 4 autonomy," he noted. "However, no one has defined a profitable business model at scale."

Ford is now redirecting its investment focus from the long-term goal of Level 4 autonomy—where vehicles can operate without human intervention—to the more immediate benefits of Level 2+ and Level 3 autonomous driving. Level 2+ includes advanced systems like Ford's BlueCruise and GM's SuperCruise, enabling hands-free driving on pre-mapped highways. Level 3 represents a higher level of automation, where the vehicle manages all safety-critical tasks along those routes, including steering and lane-keeping.

Doug Field, Ford's Chief Advanced Product Development and Technology Officer, emphasized during the call that "the commercialization of Level 4 autonomy at scale will take longer than we initially anticipated." He explained that L2+ and L3 technologies have a broader potential customer base, allowing for quicker scaling and increased profitability.

"By reallocating our investment toward a business model with significant short-term returns, we’re positioning ourselves for success," Farley added. While the company did not disclose a specific timeline for Level 4 readiness, he acknowledged that developing the foundational technologies will not happen overnight. "We no longer expect a singular 'Aha!' moment to occur."

Farley anticipates that updated L2+ and L3 systems will be launched alongside Ford's refreshed electric vehicle lineup between 2023 and 2025. "We're revamping our global EV offerings with fully updatable electric architectures and in-house software development," he said.

Field highlighted the need to retain control over the backend functions of these evolving advanced driver assistance systems (ADAS). "Having an internal core team that can integrate systems and assess their performance is crucial," he explained. "Owning the software and maintaining connectivity with these vehicles is essential for continuous improvement. Level 3 systems are connected technologies, so we must own the data pipeline that enhances the system's capabilities."

"This is a unique opportunity for us to redefine the Ford experience in a way that sets us apart," Field concluded.