Is Ford Motor Company ( NYSE:F ) planning to spin off its self-driving business as a way to boost its overall valuation?
It suddenly seems possible. Ford said this week that it has formed a new subsidiary to house its autonomous-vehicle program. And it made a point of saying that this new subsidiary will be able to take on third-party investors.
This could be a big deal. At least one Wall Street analyst thinks that rival General Motors ‘ ( NYSE:GM ) self-driving subsidiary could be worth as much as $43 billion if it were a stand-alone business — and there are signs that GM is looking at ways to realize that value.
Is that where Ford is going here? Ford’s self-driving effort — and its controlling stake in self-driving start-up Argo AI — are being folded into a new subsidiary. Image source: Ford Motor Company. What it said about its new self-driving subsidiary
Ford said that the new subsidiary, called Ford Autonomous Vehicles LLC, is “charged with accelerating its AV [autonomous vehicles] business to capitalize on market opportunities.”
Ford AV (as Ford folks seem to call it) will be run by Sherif Marakby, an Uber veteran who has been leading Ford’s electric-vehicle […]