General Motors and Amazon are discussing investments in electric vehicle maker Rivian Automotive, which estimates start-up business as $ 1 billion to $ 2 billion, people in the business say.
Plymouth, Michigan-based startup company At the Los Angeles Auto Show in November, he works on electric pickups and SUVs and debuts concept versions. The talks are progressing and a deal could be announced on Friday, said one of the people who asked not to be identified because the negotiations are private. An investment in Rivian could help GM bring a faster pantograph to the market and fend off startups like Tesla. For Amazon, investing in Rivian is an attempt to shift some of the massive fleet of vehicles that ship its packages to zero-emission vehicles.
"Rivian is bathed in the same light as Tesla, a start-up outside the home," said Jeff Schuster, LMC Automotive's Senior Vice President of Forecasting. "GM could clearly make itself an electric pickup ̵
GM has lost the allusion to a plug-in pickup option. At an investor conference in January asking if the company will sell one, CEO Mary Barra responded to an analyst saying, "You have to stick to it."
"We admire Rivian's contribution to an emission-free future -electric future," said Pat Morrissey, a GM spokesman, in a statement. Representatives for Amazon and Rivian declined to comment.
strong. Reuters reported on the talks between the three companies on Tuesday.
Like Tesla, Rivian acquired a vehicle assembly plant for a Mitsubishi Motors bought a factory in Normal, Illinois (US) for $ 16 million in early 2017. Tesla builds its electric cars in a Toyota-closed factory after parting with GM from a joint venture project
Rivian's executives said that their R1T electric pick-up would travel 60 miles per second in three seconds Reach hour and tow 11,000 pounds. Deliveries are expected to start in 2020.
Package delivery is an ideal use for electric cars because vehicles can start and stop driving at certain charging stations and ignore the fear of the battery area.
Amazon extends its delivery capabilities through a network of independent contractors. Some drive their own vehicles, led by an Amazon smartphone app. Others hire car fleets and hire teams of drivers.
"This gives Amazon the opportunity to jump into the automobile space," said Schuster. "They are probably thinking of delivery applications, and that gives them a safe start."
Amazon announced last year a delivery partner program that encourages entrepreneurs across the country to start their own businesses by hiring drivers and leasing vans. The company helps provide discounts on van rentals, insurance and others To receive expenses and offers a steady stream of business.
In just a few months, Amazon had more than 100 new stores across the country making deliveries for him and continues to recruit for the affiliate program.
The rapid growth of Amazon's e-commerce business has put pressure on the company to expand its capacity and reduce reliance on its supply partner B. United Parcel Service, FedEx and the US Postal Service.
Betting on Rivian would be Amazon's second car investment in the short term. The company was one of the participants in a $ 530 million financing round announced this year by self-driving startup Aurora Innovation.
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