Back in 2019, Ford made a $500 million financial commitment in Rivian and announced that the models would workforce up to create a Lincoln-branded luxury EV. But two yrs afterwards, the businesses say that a collaborative EV is absolutely off the table. What’s the challenge?
Maybe that is the mistaken question—Ford and Rivian are executing good on their very own, which is the principal reason they’ve determined to cancel their collaborative EV. The Ford Mach-E and F-150 Lightning EVs have absolutely smashed income expectations, and as you may perhaps know, Rivian established new data with its IPO very last 7 days (the corporation is value in excess of a trillion pounds and has only produced a handful of vehicles).
When two organizations are undertaking so perfectly inside of their individual area, there’s just no will need for a collaboration. And as Ford CEO Jim Farley discussed to Automotive Information, this achievement can truly make doing work together much more challenging. Ford and Rivian have every single created their own special EV technologies and application, and combining these kinds of unique factors would demand a ton of dollars and time.
Ford is continue to a main investor and supporter in Rivian, of course. In a statement to The Verge, Rivian spokesperson Miranda Jimenez stated that “our relationship with Ford is an important section of our journey, and Ford continues to be an trader and ally on our shared route to an electrified upcoming.”
It’s odd to see two providers engage in great in the emerging electric vehicle market. Ford isn’t just a big (and early) Rivian investor—it also provided frames and other key components for Rivian’s prototype vehicles and continually praises the scrappy startup at general public situations. (I just hope the businesses really do not merge.)
Resource: Automotive Information via The Verge