Rivian CEO Reveals Real Reasons Behind Failed Ford and Mercedes EV Partnerships
In the fast-evolving electric vehicle (EV) sector, partnerships can often signal pivotal shifts for the companies involved. Rivian, a prominent player in this arena, has seen its share of both failed and promising collaborations, each offering critical lessons and shaping its strategic trajectory.
Initially, in 2019, Ford invested a notable $500 million into Rivian, planning to use Rivian’s advanced EV platform for its own range, specifically under the Lincoln brand. Rivian’s CEO, RJ Scaringe, was optimistic, viewing it as an opportunity to “use our technology and to get more electric vehicles on the road.” However, by April 2020, the dynamics shifted dramatically. Ford opted to terminate this arrangement, prioritizing the development of its own in-house EV technology. An internal memo clarified their decision, noting, “We determined that it would be better to pivot from the Rivian skateboard platform and focus our development efforts.” Ultimately, by the end of 2022, Ford had divested most of its stake in Rivian.
Parallel to the Ford storyline, Rivian briefly engaged in a partnership with Mercedes-Benz in 2020. The goal was to co-produce electric vans by integrating both firms’ technological strengths. Yet, this collaboration dissolved a mere three months later, with Rivian deciding to focus more keenly on its own expansion projects.
These partnership dissolutions prompted deeper reflections from Scaringe. In a candid interview with The Verge, he shared, “We’ve looked at the idea of sharing our vehicle platform through a variety of lenses. We looked at vehicle platform sharing with Ford, vehicle platform sharing with Mercedes, both very publicly.” He identified a recurring core issue: the integration of Rivian’s simplified electronic control unit (ECU) usage with the more complex ECU networks of traditional auto manufacturers. “What is, in every case, always the challenge is getting the network architectures of Rivian’s platform and those other manufacturers that we’ve talked to work together,” Scaringe explained. “It’s a challenge in every possible way.”
Highlighting specific technical hurdles, Scaringe elucidated, “It’s a challenge to get the top hat from a traditional company that’s using lots and lots of supplier source ECUs to work with our platform — battery, drivetrain, chassis that has very few ECUs. It’s a challenge to get those two very different architectures to run down the same manufacturing line.” He concluded that the primary barrier “was always network architecture.”
Learning from these experiences, Rivian is now navigating a new partnership landscape with Volkswagen. Announced in the wake of past partnership failures, this collaboration involves a substantial investment of up to $5 billion from Volkswagen in Rivian. This time, the focus is sharply on overcoming previous obstacles, notably making network architectures compatible. Scaringe remarked about the VW partnership, “precisely the thing that has always been the challenge.”
With Volkswagen’s support, Rivian aims not just for financial investment but also a strategic alignment to boost market share and brand appeal in the U.S, targeting an ambitious growth to approximately 10% by 2030. Rivian is also gearing up for the future with plans to unveil next-generation models like the R2, R3, and R3X, signaling its continued commitment to innovation and market expansion in the EV industry. Through these efforts, Rivian hopes to navigate past pitfalls and steer towards a more electrified future on stable grounds.
