Rivian and Ford drop plans to co-develop EVs
On Friday, American electric car newcomer Rivian and giant Ford Motor Company have announced that they will no longer co-develop an electric vehicle or share a platform. However, Ford remains a major stakeholder in Rivian (12%).
Back in April 2019, Ford announced a partnership with Rivian to develop and produce an all-new battery electric vehicle (BEV), backed with an equity investment of $500 million. In early 2020, the American giant announced that the vehicle would bear the Lincoln logo, before canceling those plans.
“When you compare today with when we originally made that investment, so much has changed: about our ability, about the brand’s direction in both cases, and now it’s more certain to us what we have to do. We want to invest in Rivian – we love their future as a company – but at this point, we’re going to develop our own vehicles,” declared Ford CEO, Jim Farley, in an interview with Automotive News.
The situations of both companies have very much changed since the parentship agreement was signed. The massive investment from Ford came seven months before the launch of the all-electric Mustang Mach-E, a model that has proven to be successful as production numbers for 2021 have already exceeded the excepted 50 000 units per year. Furthermore, Ford has already taken nearly 200 000 deposits for the electric F-150 Lightning.
Rivian, for its part, has just delivered the first 156 units of its R1T pickup and demand is growing fast. In addition to that, the newcomer had a very successful IPO and is now valued at $99,9 billion. For context, Ford is valued at $77 billion.
“As Ford has scaled its own EV strategy and demand for Rivian vehicles has grown, we’ve mutually decided to focus on our own projects and deliveries. Our relationship with Ford is an important part of our journey, and it remains an investor and ally on our shared path to an electrified future,” declared Rivian in an emailed statement.