Ford pulls plug on electric vehicle startup

Ford and electric vehicle (EV) startup Rivian Automotive are no longer planning to work jointly on vehicles. Rivian originally announced that Ford had invested in its EV manufacturing technology last year. There were three…

Ford pulls plug on electric vehicle startup

Ford and electric vehicle (EV) startup Rivian Automotive are no longer planning to work jointly on vehicles. Rivian originally announced that Ford had invested in its EV manufacturing technology last year.

There were three major planks to the original pact, according to a statement from Rivian:

Each company would collaborate on the design, engineering and manufacturing of vehicles.

Ford would supply engine technology from its EcoBoost portfolio.

Ford would provide commercial vehicle expertise and help Rivian build its own EV-carrying commercial vehicles.

The companies last worked together to build a Rivian concept vehicle back in January.

The firms will still work together on autonomous driving technologies, according to the statement.

Ford would receive exclusive first access to the factory, engineering and production capabilities of Rivian.

The Detroit-based automaker also announced it will expand its investment in the Rivian vehicle program to $150 million, up from $100 million.

The move comes as electric vehicles face considerable challenges in the market, as previously mentioned.

Rivian’s other investor is China’s Anhui Jianghuai Automobile Group Company, or JAC Motor.

Even before launching its first EV in 2022, Ford said it would allocate $4.5 billion to launch 14 fully electric and hybrid vehicles by 2022.

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