RJ Scaringe, Rivian founder and CEO, and Ford Executive Chairman Bill Ford announce a $500 million Ford funding in Rivian.

Source: Ford Motor Co.

DETROIT – Ford Motor and Rivian now not plan to co-develop an electrical automobile, the businesses confirmed Friday.

The two firms initially introduced improvement of a joint automobile when the automaker invested $500 million in Rivian in 2019. They later mentioned it might be for Ford’s luxurious Lincoln model, earlier than canceling these plans final 12 months. Ford, on the time, mentioned the automakers would nonetheless search different alternatives to collaborate with each other.

Those plans even have now been scrapped, in keeping with Ford spokesman Ian Thibodeau. He mentioned the corporate retains ties with Rivian, together with a 12% stake within the start-up, which on the firm’s IPO final week reached a price of greater than $10 billion.

“We respect Rivian and have had in depth exploratory discussions with them, nevertheless, either side have agreed to not pursue any sort of joint automobile improvement or platform sharing,” Ford mentioned in an emailed assertion.

Rivian, which has a far larger market worth now than Ford, on Friday confirmed termination of plans.

“As Ford has scaled its personal EV technique and demand for Rivian automobiles has grown, we have mutually determined to give attention to our personal tasks and deliveries. Our relationship with Ford is a vital a part of our journey, and Ford stays an investor and ally on our shared path to an electrified future,” the corporate mentioned in an emailed assertion.

Shares of Rivian had been down by about 2% throughout post-market buying and selling after closing at $128.60 a share, up by 3.7%. Ford’s inventory was unchanged from its closing worth of $19.39 a share, down by lower than 1%.

Ford CEO Jim Farley referenced the automaker’s “rising confidence” to “win within the electrical house” as reasoning to finish the collaboration.

“When you evaluate right now with after we initially made that funding, a lot has modified: about our means, in regards to the model’s route in each circumstances, and now it is extra sure to us what now we have to do. We wish to put money into Rivian — we love their future as an organization — however at this level we’ll develop our personal automobiles,” he advised Automotive News, which first reported the collaboration was useless.

Farley, who turned CEO in October 2020, inherited the Rivian funding and collectively developed automobile from his predecessor, Jim Hackett. However, Ford below Farley bought $415 million in convertible notes in July from Rivian that turn out to be frequent inventory in June 2022.

A completely owned subsidiary of Ford known as Troy Design and Manufacturing additionally has a contract to produce elements for Rivian’s R1 automobile program, in keeping with public paperwork.

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