Ford Ends its Plans to Build a New Electric Vehicle with Rivian

Ford Motor Company along with its luxury segment Lincoln Motor Company have slashed their plans to build a new electric vehicle with EV startup company Rivian.

The announcement was made on Wednesday and cited the current financial and healthcare environment.

“Our strategic commitment to Lincoln, Rivian and electrification remains unchanged and Lincoln’s future plans will include an all-electric vehicle consistent with its Quiet Flight DNA,” stated Lincoln’s spokesperson.

“This was a decision that was mutually made by Lincoln and Rivian given the rapidly changing environment and after a review of product plans. As we moved through the development cycle, we determined that it would be better to pivot from the Rivian’s skateboard platform and focus our development efforts on Lincoln’s own fully electric vehicle,” added the spokesperson.

Ford says that its partnership with Rivian will stay intact. “Our strategic commitment remains unchanged and the company continues to work with Rivian on an alternative vehicle based on Rivian’s skateboard platform,” said the automaker.

Earlier in the week Ford reported a wider-than-expected first-quarter loss and warned for steeper losses in the next quarter as the coronavirus pandemic continues.

“I never had a business plan that was called pandemic,” Ford Chief Executive Jim Hackett said on a call after the results. “We just never imagined the economy turning off” like it has to curb the spread of the virus.

The company lost $2 billion, or 50 cents a share, in the quarter, versus a profit of $1.1 billion, or 29 cents a share, in the first quarter of 2019. Adjusted for one-time items, the car maker lost 23 cents a share compared to an adjusted profit of 44 cents a year ago.

Sales fell 15% to $34.3 billion from $40.3 billion a year ago.

Disclaimer: We have no position in Ford Motor Company (NYSE: F) and have not been compensated for this article.