Ford invested $500 million in Rivian in 2019, resulting in the formation of a partnership between the two firms. They had previously planned to collaborate on electric cars, but Ford scrapped a proposal to utilise Rivian’s chassis for an electric Lincoln model, despite both companies stating that they still wanted to cooperate. On Friday, the firms announced that they would no longer be working together.
Ford has developed its own electric car plan and demand for Rivian vehicles has risen, therefore the companies have mutually chosen to concentrate on their own projects and deliveries, according to a statement from Rivian. “Our connection with Ford is an essential aspect of our journey, and Ford continues to be an investor and ally on our shared route to an electrified future,” says the company.
The news of the change in plans was first reported by Automotive News, which cited an interview with Ford’s top executive, Jim Farley, as the source.
Since its investment in Rivian, Ford has begun to introduce its own electric vehicles to the marketplace. The Mustang Mach E, a sport utility vehicle, has earned positive parallels to Tesla’s competitive vehicles in the automotive industry. Ford is slated to begin production of a battery-powered version of its F-150 pickup truck early next year, and the company has already received tens of thousands of orders from interested buyers.
The statement from Ford said, “We have a high regard for Rivian and have engaged in significant exploratory conversations with them.” “However, all parties have agreed that they would not pursue any kind of cooperative vehicle development or platform sharing in the near future.”
Following its first public offering of shares earlier this month, Rivian now has a market capitalization of approximately $115 billion, which is much more than Ford’s market capitalization of $77 billion. Rivian has just recently begun manufacturing of an electric pickup truck and an electric sport utility vehicle, and it has only delivered a limited number of vehicles to consumers.
Ford’s participation in Rivian equates to around a 12 percent ownership position.
Rivian is developing an electric delivery vehicle for Amazon, which is also a key investor in the company.