Ford invests $500 million in startup Rivian To Build Electric Vehicle

April 25, 2019/Auto Dealer Deals

Ford Motors are now investing $500 million in startup Rivian and will be building an electric vehicles, the companies announced Wednesday.

Rivian will be putting some of the Ford money towards building to improve its annual manufacturing capacity upto 250,000 vehicles. Rivian is expected to sell 20,000 cars in 2021 and twice that in 2022. Other companies like Tesla and NIO are strugling to scale up manufacturing, and Rivian is likely to benefit from Ford’s old-world skills.

“This strategic partnership marks another key milestone in our drive to accelerate the transition to sustainable mobility,” said RJ Scaringe, Rivian founder and CEO.

Rivian has already developed two Electric vehicles. The vehicles, the R1T pickup truck and the R1S SUV, were launched last year in November whose delivery will began in 2020. The company says the top-end variant of the R1T offers a driving of over 400 miles (643.73 km), while that of the R1S delivers a range of more than 410 miles (659.83 km).

Rivia RT1

“Ford has a long-standing commitment to sustainability, with Bill Ford being one of the industry’s earliest advocates, and we are excited to use our technology to get more electric vehicles on the road. We are excited to invest in and partner with Rivian,” said Bill Ford, Ford’s executive chairman.

Ford intends to develop a new vehicle using Rivian’s flexible skateboard platform. This is in addition to Ford’s existing plans to develop a portfolio of battery electric vehicles. As part of its previously announced $11 billion EV investment, Ford already has confirmed two key fully electric vehicles: a Mustang-inspired crossover coming in 2020 and a zero-emissions version of the best-selling F-150 pickup.

Rivian remains an independent company. The investment is subject to customary regulatory approval. Following Ford’s investment, Joe Hinrichs, Ford’s president of Automotive, will join Rivian’s seven-member board.

Wishlist Updated Successfully!!