November 30, 2021

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Ford and Rivian now not plan to work collectively on electrical autos.

Ford and Rivian no longer plan to work jointly on electric vehicles.

Ford Motor and Rivian have dropped plans to develop an electrical automobile collectively, though Ford stays a significant investor within the start-up automaker.

The businesses shaped a partnership in 2019 when Ford invested $500 million in Rivian. They initially envisioned working intently on electrical autos, however Ford discarded a plan to make use of Rivian’s chassis for an electrical mannequin for its Lincoln model whereas saying they nonetheless supposed to cooperate. On Friday, the businesses mentioned collaboration was now not in prospect.

“As Ford has scaled its personal E.V. technique and demand for Rivian autos has grown, we’ve mutually determined to concentrate on our personal initiatives and deliveries,” Rivian mentioned in a press release. “Our relationship with Ford is a crucial a part of our journey, and Ford stays an investor and ally on our shared path to an electrified future.”

The change in plans was reported earlier by Automotive News, primarily based on an interview with Ford’s chief govt, Jim Farley.

Since its funding in Rivian, Ford has began rolling out electrical fashions of its personal. The Mustang Mach E, a sport utility automobile, has drawn favorable comparisons to competing fashions from Tesla. Ford is anticipated to start out making a battery-powered version of its F-150 pickup subsequent yr, and it has taken tens of hundreds of orders from prospects.

“We respect Rivian and have had intensive exploratory discussions with them,” Ford mentioned in a press release. “Nevertheless, each side have agreed to not pursue any form of joint automobile improvement or platform sharing.”

After an initial public offering of inventory this month, Rivian has a market worth of almost $115 billion, considerably greater than Ford’s valuation of $77 billion. Rivian has simply began manufacturing of an electrical pickup and an electrical S.U.V., and has delivered solely a small quantity to prospects up to now.

Ford’s holding in Rivian quantities to a few 12 % stake.

Rivian is engaged on an electrical supply van for Amazon, another major investor.

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