• Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Dividend Stocks Report
No Result
View All Result
Home Stock News

Ford and Rivian cancel plans to jointly develop an electric vehicle

by
November 19, 2021
in Stock News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

Luxury stocks rally as China reopens, but Chinese consumers may choose to shop ‘in-house’

India may have to walk a tightrope as budget looms, analysts say

Wall Street is bullish on Europe — but analysts warn investors to avoid these 5 stocks

Black Swan’s Taleb Warns ‘Disneyland’ Is Over for Investors

RJ Scaringe, Rivian founder and CEO, and Ford Executive Chairman Bill Ford announce a $500 million Ford investment in Rivian.

Source: Ford Motor Co.

DETROIT – Ford Motor and Rivian no longer plan 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. They later said it would be for Ford’s luxury Lincoln brand, before canceling those plans last year. Ford, at the time, said the automakers would still seek other opportunities to collaborate with one another.

Those plans also have now been scrapped, according to Ford spokesman Ian Thibodeau. He said the company retains ties with Rivian, including a 12% stake in the start-up, which at the company’s IPO last week reached a value of more than $10 billion.

“We respect Rivian and have had extensive exploratory discussions with them, however, both sides have agreed not to pursue any kind of joint vehicle development or platform sharing,” Ford said in an emailed statement.

Rivian, which has a far greater market value now than Ford, on Friday confirmed termination of plans.

“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. 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 company said in an emailed statement.

Shares of Rivian were down by about 2% during post-market trading after closing at $128.60 a share, up by 3.7%. Ford’s stock was unchanged from its closing price of $19.39 a share, down by less than 1%.

Ford CEO Jim Farley referenced the automaker’s “growing confidence” to “win in the electric space” as reasoning to end the collaboration.

“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. 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,” he told Automotive News, which first reported the collaboration was dead.

Farley, who became CEO in October 2020, inherited the Rivian investment and jointly developed vehicle from his predecessor, Jim Hackett. However, Ford under Farley purchased $415 million in convertible notes in July from Rivian that become common stock in June 2022.

A wholly owned subsidiary of Ford called Troy Design and Manufacturing also has a contract to supply parts for Rivian’s R1 vehicle program, according to public documents.

Next Post

All U.S. adults now eligible for Pfizer and Moderna booster shots after CDC gives final OK

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Stock News

Wall Street is bullish on Europe — but analysts warn investors to avoid these 5 stocks

by
February 1, 2023
0

Europe has been one of the brightest spots in the global stock market this year, with the benchmark Stoxx 600...

Read more

Wall Street is bullish on Europe — but analysts warn investors to avoid these 5 stocks

India may have to walk a tightrope as budget looms, analysts say

Luxury stocks rally as China reopens, but Chinese consumers may choose to shop ‘in-house’

Stocks moving in after hours: Snap, AMD, Match Group, EA

Black Swan’s Taleb Warns ‘Disneyland’ Is Over for Investors

The Stock Market Wants an Easy Fed. Powell Has Other Plans.

Load More

All rights reserved by www.dividendstocksreport.net

  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.