RJ Scaring, Founder and CEO of Rivian, and Ford Executive Chairman Bill Ford announce a $ 500 million investment by Ford in Rivian.
Source: Ford Motor Co.
DETROIT – Ford Motor and Rivian no longer plan to jointly develop an electric vehicle, the companies confirmed on Friday.
The two companies initially announced development of a joint vehicle when the automaker invested $ 500 million in Rivian in 2019. They later said it would be for luxury brand Ford Lincoln before canceling those plans last year. At the time, Ford said the automakers would continue to look for other opportunities to work with each other.
According to Ford spokesman Ian Thibodeau, these plans are also now canceled. He said the company maintains ties to Rivian, including a 12% stake in a startup that surpassed $ 10 billion in IPO last week.
“We respect Rivian and have had extensive preliminary discussions with them, but the two sides have agreed not to engage in any joint vehicle development or platform sharing,” Ford said in an email statement.
Rivian, whose market value is now much higher than Ford, confirmed on Friday that it will end its plans.
“As Ford scaled up its own EV strategy and the demand for Rivian vehicles grew, we decided to focus on our own projects and supplies. Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally. on our shared path to an electrified future, ”the company said in an e-mail statement.
Rivian shares fell about 2% in post-market trading after closing at $ 128.60 a share, up 3.7%. Ford shares were flat from the closed price of $ 19.39 per share, down less than 1%.
Ford CEO Jim Farley cited “the automaker’s growing confidence that it will” benefit from the electric space “as a reason for the end of the partnership.
“If we compare today with the time when we initially made these investments, a lot has changed: in our capabilities, in the direction of brand development in both cases, and now we are more confident in what we should do. We want to invest in Rivian – we love their future as a company, but for now we are going to develop our own vehicles. ” he told Automotive Newswho first reported that collaboration is dead.
Farley, who took over as CEO in October 2020, inherited Rivian’s investment and co-developed the car from his predecessor, Jim Hackett. However, in July, Ford under Farley acquired $ 415 million in convertible bonds from Rivian, which became common stock in June 2022.
Ford’s 100% subsidiary Troy Design and Manufacturing also has a contract to supply parts for the Rivian R1 automotive program, according to official filings.