Electrifying American cars isn’t quite “go,” but it might be soon enough.
The chief executives of Ford and Rivian, a Michigan electric vehicle startup, announced today that the two companies no longer plan to work together. That partnership was touted by Ford and Rivian as a way to launch an affordable, short-range electric car for the mass market, at a price of about $35,000.
Jim Hackett, chief executive of Ford, said in a statement, “We now have the opportunity to work with our existing supplier and supplier partners to build the lower cost electric vehicle for the mass market.” The automakers said the decision to end the partnership was driven by a desire to focus on making the “right vehicle to meet consumer demand, at the right price.”
Neither Ford nor Rivian said what roles the companies would now play in developing electric vehicles for the global market. As a result of the decision, which takes effect immediately, Ford said it will “no longer invest in or have an ownership stake in an all-electric vehicle company.” Ford said it plans to continue working with suppliers for electrification of vehicles in areas other than electric cars.
About 60 percent of the world’s electric vehicle sales will be produced in North America, Europe and China by 2030, according to PwC.
Daimler and Volvo Cars made similar announcements this week, scrapping their plans to form a joint venture. Mercedes-Benz will continue to work with its supplier partners in the EV area and focus its development efforts on electric vehicle services and software. Daimler and Volvo Cars said that in the coming years they would focus on bringing autonomous mobility to the market.
This story has been updated to clarify that these announcements don’t mean the end of electrification and tech, but rather how the two companies are approaching it.