Ford and Rivian will no longer collaborate on electric vehicles

While Ford remains a big investment in Rivian, the two companies have scrapped plans to collaborate on an electric vehicle. Ford spent $500 million in Rivian in 2019 with the intention of using the company’s skateboard platform to produce fully electric vehicles, notably a Lincoln SUV, but the project was shelved in 2020. However, the business stated that it would continue to collaborate with Rivian on the development of another all-electric car. During development, Lincoln opted to “pivot from the Rivian’s skateboard platform and concentrate our development initiatives on a Lincoln wholly-electric car,” according to a Lincoln spokeswoman.

Following the news, Rivian shares slid 1.56 percent to $126.70 in after-hours trading, while the Ford Motor stock fell 0.46 percent to $19.30. Rivian’s market value is now $109 billion, putting it the second most lucrative United States automaker after Tesla, following its blockbuster Initial Public Offering last week. The corporations announced on Friday (November 19) that they would no longer collaborate.

Rivian stated in a statement that “as Ford’s own E.V. strategy has developed and demand for the Rivian automobiles has grown, we’ve mutually decided to concentrate on our projects and deliveries.” “Ford is an ally and investor on our shared route to an electric future, and our connection with Ford is a vital element of our journey.” Automotive News had already reported the shift in plans, citing an interview with the Ford CEO Jim Farley.

Ford has begun to roll out its electric vehicles since its investment in Rivian. The Mustang Mach E, which is a sport utility vehicle (SUV), has been compared favorably to Tesla’s competitive products. Ford is slated to begin production of a battery-propelled version of its F-150 pickup truck next year, and it has already received tens of thousands of orders.

In a statement, Ford added, “We respect Rivian and have had significant exploratory discussions with them.” “However, both parties have agreed that neither cooperative vehicle development nor even platform sharing will be pursued.”

Rivian does have a market value of about $115 billion following its first public offering of the stock this month, which is much more than Ford’s $77 billion valuations. Rivian has only recently begun manufacturing an electric truck and an electric SUV and has only delivered a small number of units to consumers. Ford owns around a 12% stake in Rivian. Another significant investment, Amazon, is partnering with Rivian on the electric delivery van.

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