The German automaker Volkswagen AG announced today that it will start testing a small fleet of self-driving microbuses in Austin, Texas, with a mind to expanding to more U.S. cities in the future.

Using technology from the chipmaker Mobileye Global Inc., VW will run a fleet of 10 all-electric, autonomous ID Buzz vehicles – a kind of high-tech version of the iconic VW van. This will be the first time that VW has tested self-driving vehicles in the U.S.

The move comes just months after a multibillion-dollar VW and Ford Motor Co. project with self-driving car startup Argo AI LLC came to an end after the latter shut down. The plan, in that case, was to launch robotaxi services in various U.S. and European cities, and the failure put a damper on autonomous vehicle projects in general. Prior to VW partnering with Mobileye, VW had worked with Argo on the same project, one that VW says will see its robotaxis all over the U.S. by 2026.

The Volkswagen Group of America will lead the effort, although a new subsidiary has been created called Volkswagen ADMT, for “autonomous driving, mobility and transport.” This group will work out of both Austin and Belmont, California. Some of the engineers who previously worked for Argo will be on the teams.

The buses will not be sent out into the wild. VW will work within a geofenced area of Austin within the East and downtown parts of the city, although VW says it will move out of those areas as time goes by.

VW has said it chose Austin because of its current status as an innovation hub. The taxis, which have already been tested in Germany, will each have a trained safety driver. Although they won’t be open to public use at the start, the plan is to move into the taxi and delivery market.

“Expanding our autonomous vehicle program to the North American Region is the next step in our global strategic roadmap, and the result of a long-term collaborative investment,” Christian Senger, a member of the board of management of Volkswagen Commercial Vehicles with responsibility for the development of autonomous driving, explained in a press release. “Moving into this next phase will help us test, validate and refine technology, bring us closer to establishing commercially available transportation offerings, and eventually grow the diverse mobility portfolio for the Volkswagen Group.”

Photo: VW