Featured Cox Automotive Invests $350 Million in Rivian

Discussion in 'Rivian General Discussions' started by Administrator, Sep 10, 2019.

  1. Administrator

    Administrator Administrator

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    September 10, 2019

    Rivian lands $350M investment from Cox

    via: https://www.autonews.com/automakers-suppliers/rivian-lands-350m-investment-cox

    Rivian, the upstart electric vehicle company based in suburban Detroit, has scored a third large investor as it races to complete development of its battery-powered truck and SUV for 2020 launches.

    The company said Tuesday that Cox Automotive, parent company of well-known brands Manheim, AutoTrader, Kelley Blue Book and DealerTrack, is investing $350 million in Rivian. It is the first equity investment for Cox Automotive, or its parent Cox Enterprises, in an automaker.

    Rivian and Cox Automotive also said they will explore "partnership opportunities in service operations, logistics and digital retailing."

    Earlier this year, Amazon and Ford Motor Co. announced major invstments in Rivian. Ford kicked in $500 million, while Amazon led a $700 million investment group.

    "We are excited to work with Cox Automotive in delivering a consistent customer experience across our various touchpoints," Rivian CEO RJ Scaringe said in a statement. "Cox Automotive's global footprint, service and logistics capabilities, and retail technology platform make them a great partner for us."

    Rivian plans to follow Tesla's retail strategy of foregoing the traditional dealership model and selling directly to customers. That presents some challenges, namely the distribution of repair parts, and service. It's unclear if the Cox investment could help Rivian with those issues.

    Joe George, president of Cox Automotive's mobility group, said in a statement: "This partnership opens another channel of discovery and learning for Cox Automotive. Advancements in battery technology and the electrification of fleets are two of our primary focus areas, and we believe this relationship will prove to be mutually beneficial."

    It was unclear what percentage of equity Cox Automotive was acquiring with its minority investment. It will have a representative on Rivian's board of directors. The two companies will remain independent.
     
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  2. skyote

    skyote Well-Known Member

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    Wow, this one seems interesting to me. I'm curious to see what this will end up bringing to the table...

    Happy to see another significant amount of funding.
     
  3. skyote

    skyote Well-Known Member

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    OK, two things I'm getting from this:

    1) Cox is likely to provide mobile service for Rivian
    2) There is a Rivian fleet vehicle in the works & Cox is positioning its business to benefit from that as well
     
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  4. krcossin

    krcossin Member

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    And COX will make sure to promote their investment with Doug DeMuro going over all it's quirks and features, you can read more about my thoughts on....
     
  5. jimcgov3

    jimcgov3 Well-Known Member

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    #5 jimcgov3, Sep 10, 2019
    Last edited: Sep 11, 2019

    3) Seeing as how Cox Automotive is sisters to Cox Communications, I see possibly even providing an avenue for wireless communications for downloading and uploading data to and from the vehicles. That may be what you are saying in point 1.
    4) An avenue for Rivian to accept Trade-ins, as Cox Automotive owns Manheim, an Auction house.
     
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  6. skyote

    skyote Well-Known Member

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    Manheim also does US auto transport, global export, auto body repair, and even auto finance.

    I'm guessing they will provide a mobile (come to the customer) service experience for our Rivians.

    Finance & transport/export could play into the Rivian partnership as well. I do have a feeling though that the fleet market is Cox's real interest, so our consumer Rivians are probably just the warm up.
     
  7. Hmp10

    Hmp10 Well-Known Member

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    The types of companies that have invested in Rivian (Amazon, Ford, Cox) and the size of their investments suggest to me that the behind-the-scenes structure and operations of Rivian are very solid. These investors know how to do due diligence on all the arcane aspects of a business. If Rivian were not to make it, I suspect it would not be because they did not field a good product but because they overestimated the market for the types of vehicles they are building at launch. (As indicated by such phenomena as coal rolling and blocking Tesla superchargers, a lot of the pickup truck crowd are not going to be easy sells for an electric vehicle.)
     

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