Here’s Why Ford Is Launching Latitude AI

• Ford launches new technology unit to focus on SAE Level 3 automated-driving systems, months after making the decision to close developer Argo AI, which was jointly funded by VW.

• The automaker wants to develop an eyes-off, hands-off system for its passenger models, rather than trying to pursue Level 4 tech for private vehicles or fleet-owned robotaxis.

• Ford said it sees consumer-facing Level 4 technology as feasible much later than previously thought, despite the rollout of several Level 4 robotaxi programs.

Just a few months after deciding to shutter Argo AI, Ford is refocusing its efforts in this field with the launch of a new company. The automaker has revealed a new, wholly owned subsidiary aimed at developing automated-driving tech, hiring some 550 Argo AI employees in the process. The new company will be based in Pittsburgh but will also have additional engineering sites in Palo Alto, CA, and Dearborn, MI.

The main distinction with this effort versus Argo is that Latitude AI will focus more narrowly on Level 3 tech—eyes-off, hands-off systems that are currently seeing their first commercial debuts, albeit not in Ford cars, folding Argo AI's experience and talent into the new venture.

With a focus on Level 3 tech, Ford will aim to catch up with a number of automakers, including Mercedes-Benz and Honda, that have developed analogous systems or have already launched them.

"We see automated-driving technology as an opportunity to redefine the relationship between people and their vehicles," said Doug Field, Ford's chief advanced product development and technology officer.

At the moment, Ford offers a Level 2 system dubbed BlueCruise, which allows for hands-off operation under some circumstances, but still requires drivers to keep their eyes on the road and be ready to take over when needed. Level 3 systems, by contrast, permit drivers to not pay attention at all, allowing them to text or eat—everything short of falling asleep.

"Customers using BlueCruise are already experiencing the benefits of hands-off driving," Field added. "The deep experience and talent in our Latitude team will help us accelerate the development of all-new automated-driving technology—with the goal of not only making travel safer, less stressful, and more enjoyable, but ultimately over time giving our customers some of their day back."

Last fall Ford and VW, the main backers of Argo AI, decided to close the startup after mounting losses amid a gradual realization in the industry that consumer-oriented Level 4 autonomy is further on the horizon than originally believed.

The decision reflected a distinction between robotaxis and private vehicles: The former are already seeing limited commercial debuts in West Coast locales, including GM's Cruise, while consumer-oriented systems that could operate in unmapped environments are a very different proposition with different costs involved. For one thing, consumer-oriented vehicles would need tens of thousands of dollars in sensor tech, which is a price vehicle shoppers won't be willing to pay.

In effect, a robotaxi with its current collection of bulky sensors and hardware would not suit as a private vehicle that can be sold to buyers, especially in environments different from the geofenced ones for which robotaxis are designed. It also wouldn't be cost competitive.

Ford's recent focus on Level 3 tech is intended to solve the problem of tedious traffic.

"We believe automated-driving technology will help improve safety while unlocking all-new customer experiences that reduce stress and in the future will help free up a driver's time to focus on what they choose," said Sammy Omari, executive director, ADAS Technologies at Ford and incoming Latitude AI CEO.

However, Ford is under pressure to bring something to market in its vehicles, as GM is close to launching its own Ultra Cruise Level 3 system.

How much more would you pay for a car or truck with an eyes-off, hands-off system that works only on the highway? Let us know in the comments below.