- Ford and Rivian are no longer planning to co-develop an electric vehicle, the companies confirmed Friday.
- The two companies initially announced development of a joint vehicle when the automaker invested $500 million in Rivian in 2019.
- Ford holds a 12% stake in Rivian, which was valued at more than $10 billion at the company’s IPO last week.
DETROIT — Ford Motor and Rivian are no longer planning to co-develop an electric vehicle, the companies confirmed Friday.
The two companies initially announced development of a joint vehicle when the automaker invested $500 million in Rivian in 2019. He later said it would be for Ford’s luxury Lincoln brand, before scrapping those plans last year. Ford said at the time that automakers would still look for other opportunities to collaborate with each other.
Those plans, too, have now been scrapped, according to Ford spokesman Ian Thibodeau. He said the company maintains a relationship with Rivian, including a 12% stake in the start-up, which was valued at more than $10 billion in the company’s IPO last week.
“We respect Rivian and have had extensive exploratory discussions with them, however, both sides have agreed not to pursue any type of joint vehicle development or platform sharing,” Ford said in an emailed statement.
Rivian, which now has a far higher market value than Ford’s, confirmed the plans on Friday to end.
“As Ford scales up its EV strategy and demand for Rivian vehicles grows, we have mutually decided to focus on our projects and deliveries. Our relationship with Ford is an important part of our journey, and Ford remains an investor and partner on our shared path to an electrified future,” the company said in an emailed statement.
Shares of Rivian were down nearly 2% after closing up 3.7% at $128.60 per share during after-market trading. Ford’s stock was unchanged from its closing price of $19.39 per share, down less than 1%.
Ford CEO Jim Farley referred to the automaker’s “growing confidence” as a “win in the electric space” as an argument for ending the collaboration.
“When you compare today to when we originally made that investment, a lot has changed: about our capability, about the direction of the brand in both cases, and now it’s more about us. Not sure what we need to do. We want to invest in Rivian – we love their future as a company – but at this point in time we are going to develop our own vehicles.” He told Automotive News, which first reported the collaboration to be dead.
Farley, who became CEO in October 2020, inherited the vehicle jointly developed by Rivian Investments and its predecessor Jim Hackett. However, Ford under Farley bought $415 million in convertible notes from Rivian in July that became common stock in June 2022.
According to public documents, a wholly owned subsidiary of Ford, called Troy Design & Manufacturing, also has a contract to supply parts for Rivian’s R1 vehicle program.