Why does Ford need Rivian?

Deloitte / Consultant
OYQK80

Go to company page Deloitte Consultant

OYQK80
Jan 2, 2021 6 Comments

Why did Ford invest $500m in Rivian’s electric skateboard platform if they can build (and are building) their own electric F-150 truck? I like Rivian and I’m not trying to be a d*ck, just want to try and understand what Rivian can do for Ford that Ford can’t - or won’t - do for themselves. Does anyone have their head wrapped around this? #rivianautomotive #ford

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TOP 6 Comments
  • Yahoo
    Igpay18

    Go to company page Yahoo

    Igpay18
    Maybe it solves a patent problem for them or the charging network?
    Jan 2, 2021 1
  • LG
    iScI80

    Go to company page LG

    iScI80
    Economy of scale. If Rivian and Ford shares platform, component such as powertrain and chassis etc. can be used in common. Ford also will use VW MEB platform. It seems they chose other's platform rather than making their own
    Jan 4, 2021 1
  • Ford
    hellboy8g

    Go to company page Ford

    hellboy8g
    I don't think Ford is using Rivian's platform to build their pick up trucks and not even the VW MEB platform which is more catered to create electric vehicles in Europe.

    Although I don't know the exact reasons, I did pounder over it few times.

    As I look it, these agreements (with VW and Mahindra in India) and investments (including Spin, Argo AI) were made by the earlier CEO who did wanted to leverage Rivian's platform at some point. But as the new CEO shift was happening (along with the Pandemic capital crunch) they validated that the Rivian's platform would no longer benefit and fall well short of the Ford's needs. So they abandoned that idea and pushed with their own platform. I also heard a rumour that at some point Rivian did became rogue by becoming increasingly difficult to work with and pursued their own interests rather than collaboration.

    So ultimately Ford treats their investments in Rivian just as passive investments.
    Feb 25, 2021 0
  • Financial Services Company
    nogc

    Financial Services Company

    nogc
    Diversification or illusion of choice for consumers?
    Jan 2, 2021 0