RJ Scaringe, Rivian founder and CEO, and Ford Government Chairman Invoice Ford announce a $500 million Ford funding in Rivian.
Supply: Ford Motor Co.
DETROIT – Ford Motor and Rivian now not plan to co-develop an electrical car, the businesses confirmed Friday.
The 2 firms initially introduced growth of a joint car when the automaker invested $500 million in Rivian in 2019. They later stated it might be for Ford’s luxurious Lincoln model, earlier than canceling these plans final yr. Ford, on the time, stated the automakers would nonetheless search different alternatives to collaborate with each other.
These plans even have now been scrapped, in response to Ford spokesman Ian Thibodeau. He stated the corporate retains ties with Rivian, together with a 12% stake within the start-up, which on the firm’s IPO final week reached a worth of greater than $10 billion.
“We respect Rivian and have had intensive exploratory discussions with them, nevertheless, either side have agreed to not pursue any type of joint car growth or platform sharing,” Ford stated in an emailed assertion.
Rivian, which has a far better market worth now than Ford, on Friday confirmed termination of plans.
“As Ford has scaled its personal EV technique and demand for Rivian autos has grown, we have mutually determined to give attention to our personal initiatives and deliveries. Our relationship with Ford is a vital a part of our journey, and Ford stays an investor and ally on our shared path to an electrified future,” the corporate stated in an emailed assertion.
Shares of Rivian had been down by about 2% throughout post-market buying and selling after closing at $128.60 a share, up by 3.7%. Ford’s inventory was unchanged from its closing worth of $19.39 a share, down by lower than 1%.
Ford CEO Jim Farley referenced the automaker’s “rising confidence” to “win within the electrical house” as reasoning to finish the collaboration.
“Whenever you evaluate at this time with after we initially made that funding, a lot has modified: about our capacity, concerning the model’s route in each instances, and now it is extra sure to us what we have now to do. We need to put money into Rivian — we love their future as an organization — however at this level we will develop our personal autos,” he advised Automotive Information, which first reported the collaboration was lifeless.
Farley, who grew to become CEO in October 2020, inherited the Rivian funding and collectively developed car from his predecessor, Jim Hackett. Nonetheless, Ford below Farley bought $415 million in convertible notes in July from Rivian that change into frequent inventory in June 2022.
An entirely owned subsidiary of Ford known as Troy Design and Manufacturing additionally has a contract to produce components for Rivian’s R1 car program, in response to public paperwork.