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PR & News Rivian lands $350 million investment from Cox Automotive

Discussion in 'Automotive News, Press Releases, and Events' started by Zach Houseknecht, Sep 11, 2019.

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  1. Zach Houseknecht

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    Rivian, the adventure-minded electric automaker that plans to produce a pickup truck and SUV, has raised $350 million from global automotive services company Cox Automotive .

    The two companies said Tuesday they will also “explore partnership opportunities in service operations, logistics, and digital retailing.” Further details weren’t provided. However, a statement from Rivian founder and CEO RJ Scaringe suggests the partnership will help the EV startup provide services to its customers.

    “We are building a Rivian ownership experience that matches the care and consideration that go into our vehicles,” Scaringe said. “As part of this, we are excited to work with Cox Automotive in delivering a consistent customer experience across our various touchpoints. Cox Automotive’s global footprint, service and logistics capabilities, and retail technology platform make them a great partner for us.”
    - From TechCrunch

    What do you all think? Between Amazon's investment and now COX Auto's - is this a long term play into direct to consumer sales? Or is it more along the lines of a true tech and customer experience partnership?
     
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  3. joe.pistell

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  4. joe.pistell

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    I sent this news to CARS leaders this am, heres Alex Vetter's reply:

    upload_2019-9-11_10-31-24.png
     
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  5. Chris Cachor

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    Unlike Tesla, I thought Rivian's business model had more to do with providing engineering resources to existing manufacturers than directly competing with them? Yes, they've designed their own vehicles but from what I know about them, they're not seeking to be a vertically integrated automaker like Tesla and don't view them as a competitor. I view the R1 more as a licensing play than a vehicle with meaningful sales numbers.

    I see this nothing more than them wanting a seat at the table of a potential rocket ship. Speculating on the demise of the franchise model I think is way premature IMO.

    The direct sales model falls apart when the production numbers get big. Tesla is a prime example (logistics nightmare, service nightmare, working capital issues). They were nearly insolvent when they couldn't record in transit vehicles in Q2.
     
    #4 Chris Cachor, Sep 11, 2019
    Last edited: Sep 11, 2019
  6. Rick Buffkin

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  7. Alex Snyder

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    This hit my inbox this morning:

    https://www.thetruthaboutcars.com/2...nt-in-rivian-speaks-volumes-about-the-future/

    A short excerpt to digest before you give that link a full click:

    You'll need to click the link for the whole article.
     

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