GM-Rivian Talks Break Down, but Rivian Doesn't Seem Worried
General Motors has been negotiating with Rivian, the Michigan-based company developing some of the slickest EVs we’ve seen in a while, over the possibility of purchasing an equity stake in the promising startup. Following news that Amazon was leading a $700 million round of funding in Rivian in February, reports came streaming in that the biggest of The Big Three would likely become the startup’s next backer.
The rumored deal was expected to result in GM bringing an electric pickup to market sooner than anticipated, with Rivian seeing a boost to its funds and manufacturing capabilities. However, talks don’t appear to have progressed as expected.
According to Bloomberg, tipsters close to the matter say discussions between the two companies have effectively stalled — with no new discourse taking place within the last two weeks. Similarly, neither side is offering much (via their official channels) to refute the assertion that the proposed deal is dead in the water.
“As we have stated, we admire Rivian’s contribution to a future of zero emissions and an all-electric future,” GM spokesman Pat Morrissey said in a statement. “Talks occur on a regular basis in the auto industry between a variety of partners, but as a matter of policy we don’t discuss who, where or when those discussions might occur.”
While not particularly encouraging, Morrissey has a point. Closed-door meetings are pretty common within any industry, often resulting in nothing more than two sides having some face time before discussions fizzle out. Rivian founder R.J. Scaringe seems aware of this too, as the company has stated before that it would prefer to sell its technology to multiple manufacturers if possible.
Scaringe has also said Rivian isn’t in desperate need of financing because backers, led by Japan’s Sumitomo Corporation and Saudi auto distributor Abdul Latif Jameel Company Ltd., are committed to seeing the company succeed in its existing goals. Rivian has already claimed it can deliver its R1T pickup and R1S SUV in 2020 after raising around $1.15 billion. Any additional funds it manages to procure in 2019 are supposed to go toward its next development phase.
Having already purchased the former Mitsubishi/Diamond-Star Motors plant in Normal, IL for a paltry $16 million, the startup says it’s in a good position to deliver on its promises. It’s currently revamping the facility using its own funds, helped along by several million in state-sponsored incentives. The resulting vehicles are said to yield as much as 400 miles of electric driving range, more than enough to be competitive, as well as “evolving” autonomous capabilities.
As for GM, it’s probably too early to anticipate what the company will do regarding Rivian. While its statement regarding the matter seems a little terse, the automaker is really only reiterating what it said following February’s Amazon announcement — back when the world seemed certain it would invest.
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Carrera The diesels built during the last 10-15 years, if kept stock, don't really stink at all.
- MaintenanceCosts I keep finding myself drawn to the Fox PLCs, both the Thunderbird and the Mark VII. They really got the design right by 1980s standards. The cars were reasonably sized but didn't look dinky like the 1986 Eldorado, they were comfortable and drove pretty well, and they were available with a 302 (that even got non-asthmatic in the late years).When I bought my first car - a 1987 Taurus - I also thought about Aerobirds, but I decided (probably correctly, given the number of carpools I was part of) that I wanted four doors.
- SaraJumra Everyone can make money now a days very easily. I am a full time college student and just w0rking for 3 to 4 hrs a day. Everybody must try this home online job now by just useThis Following Website.-------->> dollar.onliejobs.workers.dev
- SaraJumra hwllo hy
- MaintenanceCosts Where's a gas inline six, for that torque and nice sound without all the diesel stink? Oh, that's right; GM being GM, they prematurely canceled it.
GM would have walked once they saw that the company was essentially vaporware as well - it's a legit angle that has to be taken into consideration.
Here's a question, did Rivian inherit UAW when it purchased the Mitsu/DSM facility?