Page 92 - Forbes - USA (March 2020)

General Motors have promised to release electric aving built a $3 billion war
pickups in the next few years. H chest from Amazon, Ford and
“The opportunities [in the EV market] are Cox in a short time is certain-
pretty substantial,” says Ed Kim, a market ana- ly an impressive start for Scar-
lyst for AutoPacific, an automotive research and inge, but if Tesla’s history is an
consulting firm based in California. If Rivian be- example, that won’t be enough funding to scale
comes a threat to Tesla dominance, it could en- production to compete with Musk. Then again,
ergize the category and set up a true EV rival- those brands see opportunity in Rivian that Tesla
90 ry. “Some experts have been predicting this for a could never provide.
while, and I think there are a few key factors hap- The partnerships Scaringe forged weren’t just
pening now that [are leading to further] pene- about the cash. In Ford’s case, the two companies
E
G tration of the EV,” says Steven Low, a professor will also build an electric vehicle together. “We’re
N of computer science and electrical engineering at providing the platform,” Scaringe says. “They
I
R Caltech. One is that vehicle range is expanding. will provide the body and the interior.” Although
A
C Another is the availability of more charging facil- Scaringe is reticent in talking about the project,
S
ities. And the third element is price. the vehicle will be a luxury SUV with Ford’s Lin-
.
J
. Rivian claims its R1S and R1T will offer out- coln brand.
R
standing performance, including a range of just Rivian hopes the Ford alliance will allow the
•

E over 400 miles, or nearly 75 miles more than company to grow beyond its own consumer elec-
L
I any other existing EV. Both will be able to sprint tric vehicle offerings. For its part, Ford is seem-
F
O from zero to 60 mph in about three seconds. ingly doing it to keep the company’s options
R
P Above all, Rivian promises genuine off-road ca- open, as it often does, to pursue the best option

E pability. Try driving your Tesla on the beach or with which to achieve its electrification goals: 40
H
T into the woods. electric vehicle models by the end of 2022. Be-
The company also plans to build out a charg- sides the Lincoln with Rivian, Ford is working on
ing infrastructure, much like Tesla’s Supercharg- the electric Mustang-inspired Mach-E SUV and
ers. “We are developing them in parallel,” Scar- both a hybrid and all-electric version of the Ford
inge says. As for the cost, Rivian’s pickup will F-150, America’s best-selling vehicle. Ford is also
have a base price around $69,000, and the SUV working with Volkswagen to develop EVs on its
will be $72,500 (and both come with a federal new EV platform.
tax incentive). Scaringe hints that these prices Amazon, meanwhile, is looking to Rivian to
will come down closer to release but wouldn’t re- develop a battery-powered delivery van as part
veal a precise figure. of its pledge to be net-zero carbon across all its
Much will depend on Rivian’s new deep-pock- businesses by 2040 and use 100 percent renew-
eted partners. able energy to power those businesses by 2030.

THE FABULOUS STUDEBAKER BOYS

Electric-car companies have been short-circuiting for more than a century. Some 50 years
after their company was founded, three of the Studebaker brothers—Henry, Clem and
John—steered their family’s prosperous wagonmaking business toward automobiles. In 1902,
Studebaker released its first battery-operated vehicle and would eventually add several
more models, including a line of commercial trucks. But the cars were expensive—around
$30,000 in today’s dollars, or nearly 15% more than a Ford Model T—and slow, maxing out
around 20 mph, a third of what a gas-powered car could do. The batteries alone weighed
970 pounds. After producing just 1,841 vehicles in
12 years, Studebaker ended its electric line in
1912 to focus on gas vehicles.
The irony was not lost on Elon Musk, who in 2018
visited the Studebaker museum in South Bend,
Indiana, and tweeted out John Studebaker’s
dictum about gas cars: “Clumsy, dangerous, STOCK MONTAGE/GETTY IMAGES; ALAMY
noisy brutes, which stink to high heaven.”
Five Pack
The Studebakers launched their wagon company
in 1852. The last car to bear their name, the
Studebaker Cruiser, rolled off the line in 1966.

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