Sun, 28 Nov 2021

Ford maintains $500 million stake in Rivian, ends cooperation

Robert Besser
24 Nov 2021, 20:11 GMT+10

DETROIT, Michigan: Electric truck manufacturer Rivian and Detroit auto giant Ford will no longer collaborate to develop an electric vehicle, it was announced on Friday.

However, Ford will maintain its stake in the start-up, after investing $500 million in 2019 when it announced plans to work together.

"As Ford has scaled its own EV strategy and demand for Rivian vehicles has grown, we've mutually decided to focus on our own projects and deliveries," Rivian spokeswoman Miranda Jimenez said.

"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."

In a statement to Agency France Press, Ford also confirmed the cancellation.

Demand has surged for Rivian's R1T pickup truck, which it began assembling in September.

Although the company was operating at a loss and had delivered fewer than 200 vehicles, at the end of last month its value soared and its November 10 stock market debut topped those of traditional automakers General Motors and Ford.

Rivian was worth $114 billion at the close on Friday, compared with Ford's $77 billion.

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