Volkswagen to launch self-driving vehicles in Texas by 2026

Volkswagen (VOWG_p.DE) said on Thursday that it plans to launch autonomous, or self-driving, vehicles for ride hailing and goods delivery services in Austin, Texas by 2026.

The German automaker, which had previously made a costly bet on Ford’s now closed self-driving car unit, Argo, has been partnering with supplier Mobileye, in a strategic shift.

This year, Volkswagen plans to test 10 ID Buzz electric vehicles retrofitted with Mobileye’s autonomous driving platform with safety drivers on board in limited areas of Austin, including downtown.

The company took over nearly 100 people from Argo, as well as its hub in Austin where Argo was testing autonomous vehicles.

Volkswagen said it will be able to leverage Mobileye’s supply base and map data to achieve economies of scale and bring down costs.