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Ford drops plan for Rivian-powered EV (msn.com)
November 19, 2021
Sean O'Kane


Ford no longer plans to make an electric vehicle with EV startup Rivian, CEO Jim Farley tells Automotive News. The Detroit automaker originally announced it wanted to make a Rivian-powered EV in 2019 when it made its first investment of $500 million into the startup. Ford and Rivian already canceled a vehicle they planned to make for the Lincoln luxury brand in 2020.

“When you compare today with when we originally made that investment, so much has changed: about our ability, about the brand’s direction in both cases, and now it’s more certain to us what we have to do,” Farley said. “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.”

More at link
 

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Weren’t there just a bunch of articles talking about how GM dropped the ball losing out on it’s bid to invest to Ford? Seems odd those articles came out just a week before this news.
 

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I thought they were making them with VW anyway?

Phew the Ranger's safe, only the designers mother could love the front lights on the Rivian truck.
 
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I thought they were making them with VW anyway?

Phew the Ranger's safe, only the designers mother could love the front lights on the Rivian truck.
Separate plans.

The VW MEB architecture deal is/was primarily focused on Euro vehicles, whereas Rivian was viewed as a more NA partner.

Your comment about design is pointless, as the vehicle(s) would've been designed by Ford built on Rivian components. They weren't slapping a Ranger EV badge on the R1T.

I still wish we could've seen the Lincoln model as it was described.
 

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Weren’t there just a bunch of articles talking about how GM dropped the ball losing out on it’s bid to invest to Ford? Seems odd those articles came out just a week before this news.
Ford owns 12% of Rivian. They invested $500Million, that investment is now worth $13.5Billion. So those articles were justified.....
 

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Correct, there was also a Ford-branded product that has also apparently been cancelled now.
The Rivian truck and utility are both mid sized, I think Ford has both of those covered with BEV Explorer/Aviator starting production in Mexico in 2023 and maybe a BEV Ranger down the track…

Personally, I think Ford should have cashed in its Rivian stock and used that to fund its own accelerated plans.
 

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Weren’t there just a bunch of articles talking about how GM dropped the ball losing out on it’s bid to invest to Ford? Seems odd those articles came out just a week before this news.
$RIVN IPO was a week ago; probably has something to do with it?

Ford has made $$$$ if they dropped $500M into the startup....
Ford owns 12% of Rivian. They invested $500Million, that investment is now worth $13.5Billion. So those articles were justified.....
Beat me to it!

KEY POINTS
  • Ford 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.
  • Ford retains a 12% stake in Rivian, which at the company’s IPO last week reached a value of more than $10 billion.

Personally, I think Ford should have cashed in its Rivian stock and used that to fund its own accelerated plans.
They can do that whenever they want, if they so decide.
 

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Personally, I think Ford should have cashed in its Rivian stock and used that to fund its own accelerated plans.
MB invested $50M into Tesla.

Then sold its 10% stake for $700M to fund its own "electrified" vehicles.

IF MB hadn't of sold their stake in Tesla their 10% of Tesla would be worth $113B today.
 

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This was Joe Hinrich's get, and he was quite proud of it, right up to the moment he was booted out the door. They did invest in Rivian mostly to get it out of GM's hands, but they also gave Rivian less onerous terms to do so. Weirdly Ford was already developing GE2 (Explorer and Aviator EVs) when they invested in Rivian, yet they tied a new Lincoln to the investment. Specifically, a sleek flagship Lincoln Crossover to be branded "Continental". They got very late in development, they even had a design that inspired the new Chinese Zephyr. It would have been nearing production right now if they had continued. In any case, this whole project made NO sense to me and it was rightfully cancelled before they had to make the next commitments on the Lincoln. And although it might have gotten Lincoln an EV 1-year sooner than the in-house Aviator, it would have been redundant pretty quickly. Not to mention it would have been very expensive, an EV customer Ford has decided is too small.

Ford never developed another product with Rivian besides prototype assembly of the Rivian R1T/S, Ford stopped working with Rivian after the Lincoln was dropped. But Ford wanted to give the impression that they hadn't completley thrown away their investment. But in reality, $500 Million is a tiny sum compared to the $30+ Billion they are spending on EVs now.

As for cashing out, Ford is under a 6-month post IPO divestment clause, they can't cash out yet as far as I understand it.
 

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This was Joe Hinrich's get, and he was quite proud of it, right up to the moment he was booted out the door. They did invest in Rivian mostly to get it out of GM's hands, but they also gave Rivian less onerous terms to do so. Weirdly Ford was already developing GE2 (Explorer and Aviator EVs) when they invested in Rivian, yet they tied a new Lincoln to the investment. Specifically, a sleek flagship Lincoln Crossover to be branded "Continental". They got very late in development, they even had a design that inspired the new Chinese Zephyr. It would have been nearing production right now if they had continued. In any case, this whole project made NO sense to me and it was rightfully cancelled before they had to make the next commitments on the Lincoln. And although it might have gotten Lincoln an EV 1-year sooner than the in-house Aviator, it would have been redundant pretty quickly. Not to mention it would have been very expensive, an EV customer Ford has decided is too small.

Ford never developed another product with Rivian besides prototype assembly of the Rivian R1T/S, Ford stopped working with Rivian after the Lincoln was dropped. But Ford wanted to give the impression that they hadn't completley thrown away their investment. But in reality, $500 Million is a tiny sum compared to the $30+ Billion they are spending on EVs now.

As for cashing out, Ford is under a 6-month post IPO divestment clause, they can't cash out yet as far as I understand it.
Joe Hinrichs is to be commended for persisting and working with Rivian owner to make the deal happen. Arguably, GM lost out with Rivian by pulling out when the terms of purchase didn’t exclude Ford from buying a stake. Ford was also looking for what it could get in already developed BEVs but clearly the evolved GE2 architectue with full integration of electrics and control systems worked out to be better for Ford…..most likely much better ROI than outsourcing to Rivian.

Six months to cash out is no biggy in my opinion as Rivian might be showing its worth by then with Picku sales as well as vans to Amazon might be the reality kick that Wall Street needs to boot stock higher….Ford should be looking to cash out if stock moves above $160 because that will pay for nearly half of Ford’s electrification plans….
 

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I've sometimes wondered if the entire Lincoln Rivian project was just theater, Ford may not have had real interest in developing products together. From the moment it happened I didn't understand what they were thinking. The idea that Ford would hand one of their EVs to Rivian to build sounded ridiculous and redundant. But if it was an IPO investment, that would make more sense, although it sounds too savvy to be true.
 
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