Ford follows GM’s Cruise move with self-driving spinoff

The Ford logo is seen at the New York Auto Show in the Manhattan borough of New York City, New York, U.S., March 29, 2018. REUTERS/Shannon Stapleton/Files

Ford Motor Co said on July 24 it was creating a separate US$4bil (RM16.25bil) unit to house its self-driving vehicle operations and is seeking outside investors, following a similar move in late May by Detroit rival General Motors Co with its Cruise Automation unit.

GM's spinoff of Cruise drew a US$2.25bil (RM9.14bil) investment from SoftBank Group, boosting GM's share price that day by 13%. SoftBank's 19.6% stake valued Cruise at US$11.5bil (RM46.73bil). GM paid an estimated US$1bil (RM4.06bil) in 2016 to acquire the San Francisco-based self-driving startup.