Ford now not plans to make an electrical automobile with EV startup Rivian, CEO Jim Farley tells Automotive News. The Detroit automaker initially introduced it needed to make a Rivian-powered EV in 2019 when it made its first funding of $500 million into the startup. Ford and Rivian already canceled a automobile they deliberate to make for the Lincoln luxurious model in 2020.

One purpose Farley gave for canceling the EV collaboration was the complexity of mixing Rivian’s electrical structure with Ford’s personal software program.

“When you compare today with when we originally made that investment, so much has changed: about our ability, about the brand’s direction in both cases, and now it’s more certain to us what we have to do,” Farley stated. “We want to invest in Rivian — we love their future as a company — but at this point, we’re going to develop our own vehicles.”

The choice to cancel the EV was mutual, in line with Rivian. “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,” Miranda Jimenez, a spokesperson for Rivian, stated in a press release offered to The Verge. “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.”

Ford made its preliminary funding in Rivian seven months earlier than it revealed the Mustang Mach-E, and simply over two years earlier than it revealed the F-150 Lightning. But it surely has discovered outstanding early success with these EVs. It has already made greater than the 50,000 it deliberate to construct in 2021, the primary full yr of Mustang Mach-E manufacturing, and is nearing 200,000 deposits for the F-150 Lightning.

Farley additionally informed Automotive Information this week that Ford plans to double the variety of EVs it can construct globally by the top of 2023 to 600,000. In September, Ford introduced plans to construct two new battery factories in Kentucky and a “mega campus” in Tennessee that may construct batteries and electrical automobiles.

Rivian, in the meantime, definitely has its arms full. It simply began delivery its first electrical pickup vehicles, is aiming to ship its first electrical SUVs by the top of the yr, and can also be engaged on electrical supply vans for Amazon — which can also be closely invested within the startup. The startup lately went public in one of many greatest IPOs ever, elevating some $12 billion within the course of.

In consequence, Ford’s 12 % stake in Rivian is now value greater than $10 billion.


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