Covington Advises Autonomous Vehicle Startup in $2.6 Billion Volkswagen Investment

PALO ALTO—Covington advised Argo AI, LLC, a technology platform company that is working with leading automakers to deliver a fully integrated self-driving system, in the deal announced today with Volkswagen AG and Ford Motor Company. Volkswagen will be making a $2.6 billion investment, becoming Argo AI’s second investor and building upon a $1 billion investment from Ford Motor Company.

The Volkswagen investment includes $1 billion in committed funding and the contribution of its Autonomous Intelligent Driving (AID) company, valued at $1.6 billion. Ford and Volkswagen will hold equal stakes in Argo, while the remainder of the company’s equity has been set aside for employees.

The Covington team representing Argo AI includes Suzanne Bell (intellectual property), Ingrid Rechtin (corporate), Kevin Zaragoza (tax), Jenna Wallace (employee benefits), Reid Hooper (securities), and Mark Plotkin, David Fagan, Jonathan Wakely, and B.J. Altvater (CFIUS).