Ford and Rivian cancel plans to jointly develop an electric vehicle

DETROIT – Ford Motor and Rivian no lengthier plan to co-acquire an electric powered auto, the companies verified Friday.

The two firms initially introduced enhancement of a joint automobile when the automaker invested $500 million in Rivian in 2019. They later claimed it would be for Ford’s luxurious Lincoln model, prior to canceling individuals programs past year. Ford, at the time, explained the automakers would nonetheless find other alternatives to collaborate with 1 a different.

These strategies also have now been scrapped, according to Ford spokesman Ian Thibodeau. He mentioned the company retains ties with Rivian, including a 12{a78e43caf781a4748142ac77894e52b42fd2247cba0219deedaee5032d61bfc9} stake in the start off-up, which at the firm’s IPO past 7 days achieved a value of additional than $10 billion.

“We regard Rivian and have experienced intensive exploratory discussions with them, having said that, both equally sides have agreed not to pursue any form of joint car improvement or system sharing,” Ford reported in an emailed assertion.

Rivian, which has a much better sector price now than Ford, on Friday verified termination of options.

“As Ford has scaled its personal EV tactic and need for Rivian automobiles has developed, we have mutually decided to aim on our personal tasks and deliveries. Our romance with Ford is an important portion of our journey, and Ford stays an trader and ally on our shared path to an electrified potential,” the organization said in an emailed statement.

Shares of Rivian have been down by about 2{a78e43caf781a4748142ac77894e52b42fd2247cba0219deedaee5032d61bfc9} all through submit-sector buying and selling after closing at $128.60 a share, up by 3.7{a78e43caf781a4748142ac77894e52b42fd2247cba0219deedaee5032d61bfc9}. Ford’s stock was unchanged from its closing price of $19.39 a share, down by a lot less than 1{a78e43caf781a4748142ac77894e52b42fd2247cba0219deedaee5032d61bfc9}.

Ford CEO Jim Farley referenced the automaker’s “developing assurance” to “acquire in the electric space” as reasoning to conclude the collaboration.

“When you examine currently with when we originally designed that financial investment, so substantially has changed: about our skill, about the brand’s route in both equally conditions, and now it can be additional selected to us what we have to do. We want to devote in Rivian — we like their upcoming as a organization — but at this level we are going to produce our very own automobiles,” he advised Automotive Information, which initially described the collaboration was useless.

Farley, who became CEO in October 2020, inherited the Rivian expense and jointly developed auto from his predecessor, Jim Hackett. Nevertheless, Ford under Farley purchased $415 million in convertible notes in July from Rivian that grow to be typical inventory in June 2022.

A wholly owned subsidiary of Ford known as Troy Style and Manufacturing also has a deal to supply elements for Rivian’s R1 vehicle plan, according to community files.