Ford Motor and Rivian have dropped plans to develop an electric vehicle together, although Ford remains a major investor in the start-up automaker.
The companies formed a partnership in 2019 when Ford invested $500 million in Rivian. They had originally envisioned working closely on electric vehicles, but Ford rejected plans to use Rivian’s chassis for electric models for its Lincoln brand, saying they still intended to collaborate.
“As Ford enhances our strategy and demand for its EV Rivian vehicles, we have mutually decided to focus on our projects and deliveries,” Rivian said in a statement. “Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared path to an electrified future.”
The change in plans was reported by Automotive News, based on an interview with Ford Chief Executive Jim Farley.
Since its investment in the Rivian, Ford has begun to produce its own electric models. The Mustang Mach E, a sport utility vehicle, has drawn favorable comparisons with Tesla’s competing models. Ford is expected to start making a battery-powered version of its F-150 pickup next year, and it has taken thousands of orders from customers.
“We respect Rivian and have had extensive exploratory discussions with him,” Ford said in a statement. “However, both sides have agreed not to pursue any joint vehicle development or platform sharing.”
Following the stock’s initial public offering this month, Rivian has a market value of about $115 billion, which is significantly higher than Ford’s valuation of $77 billion. Rivian recently introduced an electric pickup and an electric S.U.V. Started production, and so far delivered to a small number of customers.
Ford’s stake in Rivian is around 12%.
Rivian is working on electric delivery vans for Amazon, another major investor.
— Car and Driver (@CARandDRIVER) November 19, 2021