DETROIT (Reuters) – Electric car startup, Rivian Automotive, LLC was given a big boost by one of its investors on Thursday for Amazon.com announced that it was in the order of 100,000 electric vans and trucks.
FILE PHOTO: A Rivian R1S, All-Electric SUV has been displayed in 2019, the New York International Auto Show, in New York City, U. S, April 17, 2019 at the latest. REUTERS/Brendan McDermid
Before Rivian has not even begun commercial production at its plant in Normal, Ill., to the Amazon, to be increased up to the forefront of the electric vehicle and the people behind them.
Amazon’s (AMZN.(O) Chief Executive Jeff Bezos said in Washington that, as part of the online retailer’s plans to become climate neutral in the year 2040 would be electric delivery vans from Rivian, with deliveries starting in 2021. The goal is to complete the implementation of all the vehicles through 2024.
Rivian, a potential competitor to Silicon Valley’s Tesla Inc. (TSLA.(O), unveiled its electric-R1T-pick-up-and R1S compact SUV last November, but she had woken up in the Amazon, of interest, earlier. Bezos is personally reached, Rivian CEO R. J. Scaringe, last summer, to express their interest in an investment, the sources said.
Plymouth, Mich., on the basis of the Rivian was founded in 2009, has raised close to $1.9 billion from its investors, including the $700 million in February, led around by Amazon.
The deal is set Rivian take place under the EV builders, said Sam Fiorani, vice-president of the Auto Forecast Solutions. “It will help to improve the image of the Rivian notice,” he said.
Rivian will be one of the first to produce a mass-market for electric pick-up truck. The plan is to start with the sale of R1T, at the end of the year 2020, a goal that has not changed with the Amazon deal in place, he said Rivian spokeswoman Amy Mast, he said.
The traditional U.S. car makers Ford Motor Co(F. N), which is a Rivian investors, and the General Motors Co. (GM.(N), as well as a Model, are in the process of developing their own electric pickups.
The Amazon delivery vehicles, which shall be under the exclusive deal, which will be located at Rivian, from the factory, one of the former Mitsubishi manufacturing plant in Normal, Ill., Mast said. The first vehicles will be delivered in 2021 and 10,000 have to be on the road by late 2022, ” she said. The vehicles will be maintained by the Rivian.
Scaringe, has described the Rivian vehicle platform such as a skateboard, and that the packages of the drive system, battery, suspension, brakes, cooling system, all the height of the wheel to allow for more storage space and greater stability due to lower centre of gravity.
Amazon is looking for speed in the packages to shoppers’ doorsteps, regardless of whether the peak demand of the consumer, and the lack of provision of personnel. Last year, Daimler AG DAIGn.DE), Mercedes-Benz, said Amazon had become the largest customer of the “Sprinter” vans, to secure from 20,000 vehicles for the delivery of the contractors.
Ford has invested $500 million in the Rivian in April, with a plan for the use of the Rivian EV) platform for the construction of a new car in North America. The Details of the vehicle were not disclosed. Ford is not involved in any of the Rivian deal, Mast said.
Cox Automotive, Inc., the owner of the Autotrader, the online automobile marketplace, and the Kelley Blue Book, a vehicle valuation service, has invested over $350 million in Rivian this month. The companies will explore partnerships in the digital, retail, service, and logistics.
Other donors include Saudi arabia, car distributor Abdul Latif Jameel Co., Corp Sumitomo of America and Standard Chartered Bank.
Amazon’s reputation and the contract size would be to increase Rivian standing with customers and investors, Fiorani said. It also offers the advantage of not having to hunt for buyers, or to ship vehicles across the country.
Reporting by Ben Klayman in Detroit; Editing by David Gregorio