Automotive manufacturer Ford Motor Company agreed yesterday to invest $500m in US-based plug-in electric off-road vehicle developer Rivian.
Founded in 2009, Rivian has created a seven-seater sports utility vehicle called the R1S and a five-seater truck called the R1T. It has earmarked late 2020 as a release date for both vehicles and is currently accepting pre-orders.
Ford invested in connection with a partnership agreement that will allow it to develop a truck that makes use of Rivian’s flexible skateboard platform, adding to a planned range that will include electric versions of its Mustang sports car and F150 pickup truck.
RJ Scaringe, Rivian founder and chief executive of Rivian, said: “This strategic partnership marks another key milestone in our drive to accelerate the transition to sustainable mobility.
“Ford has a long-standing commitment to sustainability, with (Ford chairman) 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.”
Joe Hinrichs, Ford’s president of global operations who is set to take the title of president of automotive from next month, will join Rivian’s board of directors in conjunction with the deal.
Rivian raised $700m in a February 2019 round led by e-commerce, cloud services and smart device group Amazon that also featured unnamed existing investors, and which the company said increased its overall funding to $1.5bn.
Automotive distributor Abdul Latif Jameel, diversified conglomerate Sumitomo and financial services firm Standard Chartered had all provided financing, in the form of debt or equity, for Rivian in the past.
