Well -$Ford Motor (F.US)$owns or owned about 12% of$Rivian A...
Well - $Ford Motor(F.US$owns or owned about 12% of $Rivian Automotive(RIVN.US$, so in essence Ford just did tap the equity markets with the Rivian IPO. The F execs made a lot of money in a week. If they were smart they sold some of the stock to beef up their cash. By investing in various JVs, etc, both GM and Ford stand to profit on the markets from the EV craze.
It makes no sense at all for Ford to spin off EVs - their entire EV strategy leverages their pre-existing brand, service/dealer network, and often existing plants. It is remotely conceivable that GM might have better prospects, but I doubt that over the longer run they would find it profitable.
In the autonomous driving space, both companies will of course have independent companies "owning" those systems to limit their own liability. Ford went with Argo AI and GM of course has Cruise. Argo AI also has investment from $VOLKSWAGEN A G(VWAGY.US$.
Then there are the battery ventures.
The similar strategies followed by the "legacy" cos limit liabilities and cut investment costs, so I am not sure that any short-term gains from trying to create a spin-off to house the actual EVs would offer a longer-term benefit.
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A1EIIWLU1C : Ford has not sold any stock.
oXrssHBsXw : Your comment is spot on.
This spin off BEV group idea comes from someone who 1) doesn‘t have the foggiest clue of the automotive industry and 2) didn‘t spend 10 minutes looking at GM or Ford.
My only explaination got this trial balloon is the Tesla fans are running scared because and need a distraction.
Baby u oXrssHBsXw : I see that the usual always-wrong Tesla bears/shorts are dead set against this. Even as they arrogantly claim that, as usual, they are right and everyone else is stupid.
I wonder why? What could go wrong? /s
In the real world, getting rid of the old thinking, management, BS that slows everything down, etc. is essential to compete with the BEV leaders.
Not that I'd expect the usual suspects to ever admit it.
643YVeALhF oXrssHBsXw : It sounds like some investment banker idea. They would profit. But I don't think the companies themselves would.
Nick fun 643YVeALhF : A twofold gambit - investment bankers want some loot and Tesla needs a pump.
ViViiAnnnnn : Of course f and gm should stop making cars and focus on electric trucks and AI people movers like Apple is thinking about..Ford and GM have no reputation with young people and it is too late now to build one, change the name to protect the guilty!
areecep : I did not realize that F execs are personally profiting from F’s stake in RIVN. Tell us more.
美投讲美股 areecep : Ford profits, thus they profit.