Ford cancels Lincoln electric vehicle program with Rivian

Pherdnut

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Well, now I'm worried about supply chains stretched too thin.
 

RayzorBEV

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Interesting development...I think it has to do with money...Rivian gets $ for every Lincoln BEV produced using their skateboard chassis. Now, with money being non-existing, Lincoln is falling back on its plan B, using existing or chassis currently in the pipeline from Ford as the basis for their first luxury BEV...Ah, may we live in interesting times...
 

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Here's why Ford is pulling out of its Rivian alliance. It's losing money hand over fist, with second quarter figures just being released.
https://www.freep.com/story/money/c...-2020-worst-since-great-recession/3038280001/

Ford can't afford to pay Rivian for its skateboard and the costs of assembly in Normal. The impact of Ford's withdrawal isn't too great on Rivian, as Rivian's production capacity was already being stretched pretty thin with three models, R1T, R1S and Amazon vans, slated for production in a newly refurbished and expanded plant. In the short run, this might be a plus for pre-order holders. Fewer complications, more focus on Rivian and Amazon trucks. Long term, the more skateboards, models and re-badged vehicles Rivian can produce, the better.
 

EyeOnRivian

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Ford and Lincoln cancel Rivian-powered electric vehicle due to the pandemic

Yep, no shortage of coverage on this announcement.

Here's why Ford is pulling out of its Rivian alliance. It's losing money hand over fist, with second quarter figures just being released.
https://www.freep.com/story/money/c...-2020-worst-since-great-recession/3038280001/

Ford can't afford to pay Rivian for its skateboard and the costs of assembly in Normal. The impact of Ford's withdrawal isn't too great on Rivian, as Rivian's production capacity was already being stretched pretty thin with three models, R1T, R1S and Amazon vans, slated for production in a newly refurbished and expanded plant. In the short run, this might be a plus for pre-order holders. Fewer complications, more focus on Rivian and Amazon trucks. Long term, the more skateboards, models and re-badged vehicles Rivian can produce, the better.
To your point, from what I read Rivian was also in agreement in this decision. For Rivian, IMO, this is also low hanging fruit to help create space in production time lines that are currently getting squeezed and pushed out. Rivian has to give priority to the R1T and R1S production with the Amazon vans to follow closely behind. There are still enough doubters out there regarding Rivian. The best thing Rivian can do to help squelch that noise is to focus and launch their own vehicles sooner than latter *and* with quality. Hopefully with this development it sharpens Rivian's focus on those tasks and maybe down the road they can (and probably will) partner up with other builds. To be honest, I actually prefer there be less on Rivian's plate at this point.
 

Kickaha

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Agreed - I was starting to get concerned.

From a branding perspective, as the saying goes, "you only get one chance to make a first impression". Having less to deal with will let them focus more on that first impression.

Once that first customer delivery is made (as long as its not crap), the Fast Follower Effect will kick into gear and Rivian will have more orders than they can fulfill so not having to split production expertise between two vehicles will help.

I only hope that Rivian didnt have to give up the production assitance I hope Ford is giving them as part of the partnership.
 

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I only hope that Rivian didnt have to give up the production assitance I hope Ford is giving them as part of the partnership.
Yea, I had that same after thought. Ford sharing their production expertise I believe had assuaged some people's concerns in the area of Rivian's production quality and speed in ramping up to meet demand.
 
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The value of Ford's production expertise certainly isn't something to dismiss but their most recent launches (thinking Explorer and Aviator) have been very troubling from a quality perspective. Their inability to execute is certainly a contributor their current financial woes.
 

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The good news is a $500 million investment by Ford stays put, and it likely has a multiplier effect: it builds Rivian's resources, especially cash reserves, and benefits its reputation; it gives Rivian more clout with suppliers, some of whom supply Ford; Rivian may gain some production knowhow from Ford, and this may be important for Rivian's aluminum bodywork (Ford having made a transition to an all-aluminum F-150 body in 2015); Rivian can sharpen its engineering and production goals on fewer models in the near term, when it counts the most, since the first few months of production will be highly scrutinized and reported on.
 
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Rob P

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The value of Ford's production expertise certainly isn't something to dismiss but their most recent launches (thinking Explorer and Aviator) have been very troubling from a quality perspective. Their inability to execute is certainly a contributor their current financial woes.
With that said Rivian has never run an assembly line and Tesla had huge problems and delays that I was hoping Rivian would avoid with a helping hand. So long as the build quality is good ( fingers crossed ) I am all in still.
 

Pherdnut

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With that said Rivian has never run an assembly line and Tesla had huge problems and delays that I was hoping Rivian would avoid with a helping hand. So long as the build quality is good ( fingers crossed ) I am all in still.
Scaringe is described by one of his earliest advisors as being as much of a manufacturing nerd as he is an automotive nerd. He also seems less interested in reinventing things unnecessarily or setting goals before understanding what the realistic time frames are. There will be bumps, but you don't have to learn all the lessons the hard way, like Musk does.
 

OldEVGuy

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I’m a huge fan of R.J. and what he’s doing. He has so many bright, talented people with him, I‘m confident they will be able to produce world class vehicles.

I was really counting on the Rivian based Lincoln as my first choice for my first EV. I guess I’ll move on to Plan B. . . the Volvo XC90 Recharge BEV that’s supposed to be out in 2022. In the mean time, I’ll be watching closely, what Ford does with a BEV for Lincoln.

I hope all of you on this forum enjoy your Rivian. I’ll be watching from the sidelines.

Happy Trails!
 
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