Automobile company, Ford Motor has decided to cut its stake after the company failed to gather profit. The company has chosen to cut 1.15 percent in EV maker Rivian Automotive and predicted a hard year from here on.
Although Rivian declined to comment, shares of it reduced down to 3.6 percent in early trade.
Ford wrote down the worth of Rivian investment in 2022 of $7.4 billion US dollars but recently has been lowering its production as it struggles to produce at the Irvine, California-based company. At the end of the previous year, Ford held around an 11.4 percent stake in Rivian.
In the afternoon trade, the shares of Rivia fell up to 3.4%. The year 2022 turned out very poor as it lost value of about 82%, as the company’s supply chain was disrupted and missed the 2,500 units of production target last year.
Reuters reported last week that Rivian planned to lay off 6% of its total staff due to decreasing cash reserves. The updated list of the stake was disclosed in a filing on Wednesday.
However, Rivian failed to comment on this matter. The company has been losing money on almost every vehicle it produces.
Ford is an American automobile manufacturing company based in Dearborn Michigan, United States. Founded by Henry Ford, the company sells automobiles under its brand name and several other luxury cars.
With its huge production and popularity, Ford is America’s second-largest automaker and the fifth-largest in the World besides Volkswagen, Hyundai, etc.
After serving as the Chief Operating Officer, Jim Farley became the new Chief Executive Officer in August 2020 succeeding Hackett who was on the advisory board until late 2021.