Ford and Rivian Cancel Joint EV Development Plan

Ford Discontinues Joint EV Development with Rivian

Ford Motor Company and Rivian have mutually decided to cease collaborative efforts on the development of a shared electric vehicle. Ford CEO Jim Farley revealed in a recent interview with Automotive News that the automaker will pursue its electrification goals independently.

This shift in strategy comes as Ford targets an ambitious production capacity of 600,000 electric vehicles annually by the close of 2023. The initial agreement, established in 2019 with Ford’s $500 million investment in Rivian, centered on co-developing a Ford-branded EV utilizing Rivian’s innovative “skateboard” powertrain.

Previous Collaboration Adjustments

Early in 2020, the partnership experienced its first adjustment when plans for a Lincoln-branded EV were scrapped, attributed to disruptions caused by the global pandemic. Despite this cancellation, both companies expressed continued intent to proceed with an alternative vehicle project leveraging Rivian’s underlying technology.

However, that subsequent project will no longer be pursued. Farley explained that Ford’s increased confidence in its own capabilities and a clearer brand direction have contributed to this decision.

Factors Influencing the Decision

Farley highlighted the evolving landscape since the initial investment. He stated that Ford’s internal advancements, coupled with a refined understanding of both brands’ trajectories, have solidified the company’s path forward.

A significant factor in the decision was the inherent difficulty in integrating the distinct hardware and software systems of both companies. Despite this change, both Ford and Rivian maintain that their overall relationship remains positive.

Statements from Rivian

Rivian echoed this sentiment, stating that as Ford’s own EV initiatives have expanded and demand for Rivian’s vehicles has increased, a mutual focus on independent projects became the logical course of action.

A Rivian spokesperson communicated to Engadget: “Our relationship with Ford is an important part of our journey, and Ford remains an investor and ally on our shared path to an electrified future.”

Note: This article was originally published on Engadget.