Market Overview

Rivian Nabs $350M From Cox Automotive

Share:
Rivian Nabs $350M From Cox Automotive

For Rivian, good things come in threes. 

Following a $700 million raise led by Amazon.com, Inc. (NASDAQ: AMZN) in February and another $500 million investment from Ford in April, electric-vehicle maker Rivian has hit the jackpot once again, announcing on Sept. 10 that it received a $350 million equity investment from global automotive services giant Cox Automotive.

"We are building a Rivian ownership experience that matches the care and consideration that go into our vehicles," said RJ Scaringe, founder and CEO of Rivian, in a statement. "Cox Automotive's global footprint, service and logistics capabilities, and retail technology platform make them a great partner for us."

A decade-old startup that styles itself as an "adventure vehicle" maker, Rivian plans to produce its two battery-electric models, the R1T truck and R1S SUV, at a former Mitsubishi Motors plant in Normal, Illinois, that it acquired in 2017.

Both truck and SUV will provide over 400 miles of range and an "unmatched combination of off-road utility and high performance," according to the company.

Deliveries of the vehicles are expected to begin in late 2020, followed by four additional products through 2025.

Cox Automotive is a subsidiary of Cox Enterprises, which is best known for its consumer-facing brands such as Autotrader, Kelley Blue Book and Manheim, which transports, services, and auctions vehicles across more than 150 global locations. 

"We are excited by Rivian's unique approach to building an electrified future and to be part of the positive impact its products will bring to our roads and the world around us," said Sandy Schwartz, president of Cox Automotive. "This investment complements Cox Automotive's own commitment to environmental change through our Cox Conserves efforts."

In addition to the deal, Rivian and Cox will explore partnership opportunities in service operations, logistics, and digital retailing, the release said.

Rivian joins other startups as well as established manufacturers in what has become a race to build all-electric pickup trucks. Tesla Inc (NASDAQ: TSLA) is expected to unveil one such pickup later this year and Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM) are developing similar vehicles.

Image Sourced from Wikimedia Commons

Posted-In: Cox Automotive electric vehicles Freight FreightwavesNews Markets Tech General Best of Benzinga

 

Related Articles (AMZN + F)

View Comments and Join the Discussion!

Analyst: Comparing Apple TV+ With Netflix Isn't Fair

Red Robin Reiterates That Vintage Capital's Proposal Undervalues The Company