One of the most intriguing partnerships in the automotive industry in recent years is now off, reports Automotive News. Indeed, Ford and Rivian, which entered into their deal in 2019, will continue on their separate ways.
Initially, the goal was for the two automakers to jointly produce an electric vehicle under the Ford banner. This is now off, as Jim Farley, Ford's top boss, reportedly told Automotive News. At the same time, the executive said in an interview with the magazine that Ford now has a plan to build 600,000 electric vehicles worldwide by 2024. In practical terms, Ford wants the number 2 spot, behind Tesla.
That’s a goal high on ambition, but the company apparently feels it has what it takes to get there alone.
Recall that Ford’s agreement with Rivian in 2019 called for an investment by the automotive giant of $500 million in the then brand-new company. Ford arrived at the handshake before GM, which had also had a meeting with Rivian boss RJ. Scaringe.
The future Ford vehicle was to use the Rivian platform that will underpin the R1S SUV and the R1T truck that’s about to make its debut. Now, according to Jim Farley, Ford is far enough ahead with its own electric vehicle program that it doesn't need Rivian.
All of this comes shortly after Rivian's highly successful stock market debut. Ford, which holds a 12 percent stake in the fledgling company, will have reaped what the Wall Street Journal called a $7 billion-plus windfall.
And while the marriage between Ford and Rivian appears to be over, the relationship will continue, Jim Farley told Automotive News. “We want to invest in Rivian - we like their future as a company.”
An amicable divorce, you might call it.
See also: Top 10: Electric Pickups We're Eagerly Awaiting in 2021 and 2022