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| Ford and Rivian cancel joint electric vehicle development |
Ford CEO Jim Farley told Automotive News that Ford no longer plans to partner with electric vehicle startup Rivian to produce electric vehicles.
The Detroit-based automaker initially announced plans to build an electric vehicle with Rivian in 2019 when it made its first $500 million investment in the startup.
Ford and Rivian have canceled the cars they were planning to build for the luxury brand Lincoln in 2020.
"In both cases, our capabilities and the focus of our brand have changed significantly compared to our first investments," Farley said. What is certain is that we still have a lot to do. We want to invest in the Rivian, but we are currently working on developing our own vehicle.
Ford is set to become the second largest maker of electric cars in the country within two years. She no longer thinks she needs Rivian's help.
According to Rivian, the decision to phase out electric cars is widespread. "With Ford expanding its electric vehicle strategy and increasing demand for Rivian vehicles, we decided together to focus on our projects and deliveries," a Ford spokesperson said. Our relationship with Ford is an important part of our journey, and you continue to be an investor and ally in our journey together toward an electric future.
The automaker invested in Rivian seven months before the launch of the Mustang Mach-E and more than two years before the launch of the F-150 Lightning. But he had great early successes with these electric cars.
It has produced more than 50,000 cars and is scheduled for production in 2021. This is the first year-round production of Mach-E Mustangs. F-150 Lightning orders total nearly 200,000 units.
Rivian said the decision was shared with Ford
Farley also stated that the company plans to double the number of electric cars manufactured worldwide to 600,000 by the end of 2023.
In September, the company announced plans to build two new battery factories in Kentucky and a major battery and electric vehicle manufacturing facility in Tennessee.
Meanwhile, Rivian has begun shipping its R1T electric truck. The goal is to bring the electric R1S to market this year.
It also develops electric delivery trucks for Amazon, which is also investing heavily in this startup.
This startup was announced in one of the biggest IPOs recently. He raised about $12 billion in the process. As a result, Ford's 12 percent stake in Rivian is worth more than $10 billion.
As revealed recently in the startup's inventory documents, Ford Rivian helped get here.
The Detroit automaker built the Rivian prototype chassis. He has agreed to supply some auto parts including engineering tools and related tools for the whole R1 series.