{"id":13776,"date":"2021-11-20T00:03:46","date_gmt":"2021-11-20T05:03:46","guid":{"rendered":"https:\/\/autosector.com\/auto\/?p=13776"},"modified":"2021-11-20T00:03:46","modified_gmt":"2021-11-20T05:03:46","slug":"ford-rivian-abandons-joint-development","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=13776","title":{"rendered":"Ford, Rivian Abandon Joint EV Development Plans"},"content":{"rendered":"<p><a href=\"https:\/\/insideevs.com\/ford\/\">Ford<\/a> ditches the plans to jointly develop electric vehicles with <a href=\"https:\/\/insideevs.com\/rivian\/\">Rivian<\/a>, and both companies will focus on their own EV projects.<\/p>\n<p>Ford invested some $500 million in Rivian in 2019 (later increasing the amount to $1.2 billion), but in the end they will not introduce a jointly developed EV.<\/p>\n<p><em>By the way, shortly after the IPO, Rivian had a market cap almost 50% higher than Ford.<\/em><\/p>\n<p>First, the companyies decided in April 2020 that the\u00a0<a href=\"https:\/\/insideevs.com\/news\/395700\/lincoln-first-bev-rivian-skateboard-platform\/\">Rivian-based Lincoln<\/a> was <a href=\"https:\/\/www.motor1.com\/news\/418945\/lincoln-cancels-rivian-based-crossover\/\" target=\"_blank\" rel=\"noopener noreferrer\">canceled<\/a>. And now, it&#8217;s official that Ford will not use Rivian&#8217;s EV tech either.<\/p>\n<section contenteditable=\"false\" draggable=\"true\" data-widget=\"video\" data-url-params=\"\"><img decoding=\"async\" class=\"sizer\" draggable=\"false\" src=\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAABAAAAAJCAYAAAA7KqwyAAAAGXRFWHRTb2Z0d2FyZQBBZG9iZSBJbWFnZVJlYWR5ccllPAAAABpJREFUeNpi\/P\/\/PwMlgImBQjBqwLAwACDAAOVfAw9\/ZDvcAAAAAElFTkSuQmCC\" alt=\"\"\/> <\/p>\n<p><iframe width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"\" data-src=\"https:\/\/www.youtube.com\/embed\/w94vsw7JKxo\" data-src-param=\"\">[embedded content]<\/iframe><\/p>\n<\/section>\n<p>According to <a href=\"https:\/\/www.autonews.com\/automakers-suppliers\/ford-rivian-cancel-plans-jointly-develop-ev\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Automotive News<\/em><\/a>, Ford CEO Jim Farley set a new direction to make the company a high-volume BEV manufacturer (<a href=\"https:\/\/insideevs.com\/news\/548955\/ford-doubles-global-ev-projection\/\">600,000 per year globally and #2 in the U.S. by the end of 2023<\/a>) and does not need Rivian to achieve that.<\/p>\n<blockquote readability=\"13\">\n<p>&#8220;&#8221;Right now, we have growing confidence in our ability to win in the electric space,&#8221; Farley said in an interview Thursday. &#8220;When you compare today with when we originally made that investment, so much has changed: about our ability, about the brand&#8217;s direction in both cases, and now it&#8217;s more certain to us what we have to do. We want to invest in Rivian \u2014 we love their future as a company \u2014 but at this point we&#8217;re going to develop our own vehicles.&#8221;&#8221;<\/p>\n<\/blockquote>\n<p>Well, it sounds totally rational if the company is going all-electric to focus on its own vehicles, architectures and solutions. Outsourcing is usually a cost-reduction approach when a company is not going full-scale (EVs as a side project). The complexity of using an external platform\/architecture is too high compared to in-house solutions for the mass market.<\/p>\n<p>Electrification is a big change for Ford &#8211; maybe the biggest since the Model T. And who knows, maybe we will even see an all-electric Model T?<\/p>\n<blockquote readability=\"8\">\n<p>&#8220;As a leader of Ford I get really excited, because there hasn&#8217;t been a chance to transform Ford and create this much value since we scaled the Model T. The chance to emerge out of this transition to a digital product with a much higher valuation is now much clearer.&#8221;<\/p>\n<\/blockquote>\n<p>Ford is expected to stay a shareholder of Rivian though, and reports outstanding relationships.<\/p>\n<blockquote readability=\"13\">\n<p>&#8220;&#8221;Rivian&#8217;s a special case for us; it&#8217;s kind of like a brother or a sister, since we&#8217;re an investor,&#8221; Farley said. &#8220;We know [CEO RJ Scaringe] and the company really well.&#8221;&#8221;<\/p>\n<p>&#8220;&#8221;We have slightly different business models,&#8221; he said. &#8220;We like what they&#8217;re doing, but we&#8217;re going to go our separate ways.&#8221;&#8221;<\/p>\n<\/blockquote>\n<p>Ford now must focus on manufacturing, supply chains and significant new investments as it&#8217;s already clear &#8211; Jim Farley said &#8211; that the announced new battery plants <a href=\"https:\/\/insideevs.com\/news\/536752\/ford-massive-investments-tennessee-kentucky\/\">in Tennessee and Kentucky<\/a> (129 GWh per year total) will not be enough.<\/p>\n<blockquote readability=\"8\">\n<p>Already we need more than we planned. I&#8217;m not going to give you a number, but it&#8217;s very clear we&#8217;ll have to move soon, and it will be more.&#8221;<\/p>\n<\/blockquote>\n<p>Jim Farley adds that Ford has three hits on its hands &#8211; <a href=\"https:\/\/insideevs.com\/ford\/mach-e\/\">Ford Mustang Mach-E<\/a>, <a href=\"https:\/\/insideevs.com\/ford\/e-transit\/\">Ford E-Transit<\/a> and <a href=\"https:\/\/insideevs.com\/ford\/f-150-ev\/\">Ford F-150 Lightning<\/a>. The main objective is to scale-up to #2 in the U.S. and &#8220;make money on those products.&#8221; Then the company will proceed forward.<\/p>\n<section class=\"relatedContent-new\" contenteditable=\"false\" draggable=\"true\" data-widget=\"related-content\" data-widget-size=\"content\" data-params=\"%7B%22type_id%22%3A0%2C%22title_id%22%3A%22%22%2C%22items%22%3A%5B%7B%22article_edition_id%22%3A%22548740%22%2C%22title%22%3A%22Watch%20Rivian%20R1T%20Vs%20Toyota%20Land%20Cruiser%20100%20At%20Diablo%20Drop%20Off%22%2C%22alias%22%3A%22rivian-r1t-land-cruiser-100%22%2C%22section%22%3A%221%22%2C%22is_video%22%3A%221%22%2C%22images%22%3A%7B%22s5%22%3A%22https%3A%2F%2Fcdn.motor1.com%2Fimages%2Fmgl%2FMkWW18%2Fs5%2Frivian-electric-truck-vs.-land-cruiser-100-source-jondz-adventuring.jpg%22%7D%7D%2C%7B%22article_edition_id%22%3A%22549185%22%2C%22title%22%3A%22Autolist%20Survey%3A%20Ford%20F-150%20Lightning%20Is%20The%20Most%20Wanted%20EV%20Pickup%22%2C%22alias%22%3A%22autolist-survey-ev-pickup-ford%22%2C%22section%22%3A%221%22%2C%22is_video%22%3A%220%22%2C%22images%22%3A%7B%22s5%22%3A%22https%3A%2F%2Fcdn.motor1.com%2Fimages%2Fmgl%2FR038m%2Fs5%2F2022-ford-f-150-lightning-pro.jpg%22%7D%7D%5D%7D\">   <\/section>\n<section contenteditable=\"false\" draggable=\"true\" data-widget=\"video_mstv\"><img decoding=\"async\" class=\"sizer\" draggable=\"false\" src=\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAABAAAAAJCAYAAAA7KqwyAAAAGXRFWHRTb2Z0d2FyZQBBZG9iZSBJbWFnZVJlYWR5ccllPAAAABpJREFUeNpi\/P\/\/PwMlgImBQjBqwLAwACDAAOVfAw9\/ZDvcAAAAAElFTkSuQmCC\" alt=\"\"\/>  <\/section>\n","protected":false},"excerpt":{"rendered":"<p>Ford ditches the plans to jointly develop electric vehicles with Rivian, and both companies will focus on their own EV projects. Ford invested some $500 million in Rivian in 2019 (later increasing the amount to $1.2 billion), but in the end they will not introduce a jointly developed EV. By the way, shortly after the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-13776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/13776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13776"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/13776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13776"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}