Cox Automotive Invests $350 Million Into Rivian, Partners On Sales & Service
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Rivian has brought another giant investor on board today with the announcement that Cox Automotive is injecting $350 million as an equity investment. The investment opens the doors for the two companies to work together in service operations, logistics, and digital retailing, according to the press release announcing the deal.
Trusted names like Kelley Blue Book and Autotrader are among a lengthy list of the automotive service companies that Cox Automotive manages that span from automotive purchasing to service, ownership, and even used car sales on the back end.
“We are building a Rivian ownership experience that matches the care and consideration that go into our vehicles,” said RJ Scaringe, founder and CEO of Rivian. “As part of this, we are excited to work with Cox Automotive in delivering a consistent customer experience across our various touch points. Cox Automotive’s global footprint, service and logistics capabilities, and retail technology platform make them a great partner for us.”
Joining forces with Rivian could give the electric upstart a leg up on the competition when it comes to developing a go-to market strategy, not to mention all the downstream services that come after the customer pulls the trigger on a new vehicle. Remember that after Tesla conquered production hell, delivery hell and service hell were waiting in the hallway for customers around the world.
For Cox Automotive, partnering with a leading electric vehicle company like Rivian adds a much needed injection of excitement and perspective that is lacking in many facets of the traditional automotive industry.
“We are excited by Rivian’s unique approach to building an electrified future and to be part of the positive impact its products will bring to our roads and the world around us,” said Sandy Schwartz, president of Cox Automotive. “This investment complements Cox Automotive’s own commitment to environmental change through our Cox Conserves efforts.”
Partnering with Rivian at an equity investment level also gives Cox Automotive insights into the inner workings of electric vehicles at a time when automotive companies around the world are finally starting to steer short and long term company strategies towards full vehicle electrification. With that in mind, Cox Automotive can glean insights into what makes these new vehicles tick, what their maintenance needs are, and what owners expect from them. While they look the same on the outside, just about everything changes under the hood, inside the frunk, and on the axles of these new entrants into the automotive world.
“With the electrification of vehicles set to play a significant role in the new mobility future, this partnership opens another channel of discovery and learning for Cox Automotive,” said Joe George, president of Cox Automotive Mobility Group. “Advancements in battery technology and the electrification of fleets are two of our primary focus areas, and we believe this relationship will prove to be mutually beneficial.”
The addition of the Cox Automotive announcement puts Rivian’s fundraising in 2019 at more than $1.5 billion dollars after a $700 million funding round led by Amazon, followed closely by Ford dropping $500 million into the electric truck builder.
Source: Rivian
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