Online retailer Amazon & automotive conglomerate General Motors are eyeing up EV startup Rivian for investment, which has the potential to jack up their valuation to an eye-watering US$2-billion. Rivian is an EV firm that’s been working in the shadows for a decade, bursting onto the scene recently with the revolutionary R1T ute & R1S SUV.
GM & Amazon may command significant cash reserves, but their stake in Rivian would only be a minority one, with the majority shareholdings remaining between the existing stakeholders. For the uninitiated, Rivian is presently funded by Saudi auto distributor Abdul Latiff Jameel (who contributed nearly $500-million), Sumitomo of Americas (who did not disclose their contribution), and Standard Chartered (who is providing debt financing of US$200-million).
A source speaking to Automotive News Europe, who asked to remain anonymous, said that the deal could be wrapped up by the end of this month should everything go well. Sources did caution that at this stage, the negotiations could always fall through too, so it’s not a sure thing. Amazon & Rivian declined to comment, but GM said of them:
“We admire Rivian’s contribution to a future of zero-emissions, and an all-electric future.” – Statement, General Motors
Major restructuring within GM would have given them enough financial leeway to make a run for Rivian, and it’d be in keeping with CEO Mary Barra’s intent to push for electrification. In November, the American company said that it’d be doubling the resources devoted to electrification & autonomous vehicles, even though that came at the cost of no less than 5 manufacturing facilities in North America.
On the other hand, Amazon is just making its break into the automotive market, on the back of last week’s announcement that they’d be plunging no less than $530-million into self-driving car startup Aurora Innovation. Amazon’s intent is not only to bolster its own logistics network, but also to perhaps provide consumer devices (namely cars) in the future. Amazon has already signed deals with cargo carriers worldwide, and even with Mercedes-Benz, in order to expand its logistical footprint.
For the best deals on a new car, check out our Showroom.
