Rivian Automotive Inc., the EV startup backed by Amazon Inc. and Ford Motor Co., is in talks to invest at least $5 billion to build a factory near Fort Worth, Texas, according to a document obtained by Bloomberg News.
The factory — codenamed “Project Tera” according to the document — will be able to produce 200,000 vehicles a year, and will create at least 7,500 jobs by 2027. The presentation, made by the City of Fort Worth’s Economic Development Department to the City Council and dated Aug. 10, also includes a number of incentives including grants and county tax abatement of up to $440 million.
The $5 billion capital investment commitment from Rivian includes a minimum $2 billion in real property improvements and $1.6 billion in hard construction costs, the document shows. The company has committed to completing its initial investments by the end of 2024.
While a number of states and cities are still under consideration, the Texas site has become the front-runner for Rivian, according to people familiar with the matter. Rivian, and in particular CEO R.J. Scaringe, had previously been keen on a location in Arizona but concerns were raised around the available infrastructure, the people said, asking not to be identified discussing private information.
No final decision has been made and it could be some weeks before a deal is agreed with one of the cities or states, the people said.
Robert Sturns, the director of economic development for Fort Worth, said in an email that the city is “very excited to be a finalist for this project and looks forward to continuing the process.”
Sturns told members of the City Council during a presentation on Tuesday that several states were still under consideration by Rivian. The City of Fort Worth believes it offers a number of competitive advantages, including strong access to talent and the “ability to stand up production fast” it said in the document.
Texas, with its growing tech economy, access to ports and proximity to suppliers in Mexico. has caused some to call it the Detroit of the south. Toyota Motor Corp.’s North American headquarters are in Plano, and Elon Musk’s Tesla Inc. is building a new vehicle factory in Austin that is slated to be completed later this year.
Rivian didn’t immediately respond to a request for comment.
The Irvine, Calif.-based automaker is at the head of a large pool of EV startups trying to catch up with Tesla. The company has caught attention with its planned battery-electric pickup and SUV and a deal to build Amazon 100,000 electric delivery vans by the end of the decade.
It has raised more than $10.5 billion from a stellar list of investors including Ford and T. Rowe Price. The company already operates a factory in Normal, Ill., but recently delayed the start of production on its debut EV due to supply-chain disruptions.
The proposed 2,000-acre Walsh Ranch site in Texas is located 12 miles southwest of downtown Fort Worth and
TAIPEI, July 9 (Reuters) – Taiwan’s Foxconn said on Friday it was in talks with the U.S. state of Wisconsin about building electric vehicles there, part of the major Apple Inc supplier’s push to diversify income streams.
Foxconn and electric car manufacturer Fisker Inc said in May that they had finalised a vehicle-assembly deal. They did not identify a location, but Fisker’s CEO said Foxconn’s Wisconsin site was a possibility.
In a statement, Foxconn said it had begun discussions with Wisconsin.
“Foxconn has engaged the Wisconsin Economic Development Corporation to discuss the company’s plans for electric vehicle manufacturing. Foxconn is optimistic about our partnership with WEDC and looks forward to ongoing discussions,” it added.
The company, formally called Hon Hai Precision Industry, gave no further details.
A Wisconsin Economic Development Corp spokesman said the agency does not comment on any potential talks until a contract is executed.
In April, Foxconn drastically scaled back a planned $10 billion factory in Wisconsin, confirming its retreat from a project that former U.S. President Donald Trump once called “the eighth wonder of the world” and was supposed to build cutting-edge flat-panel display screens.
A month earlier, Foxconn’s chairman said it may make electric vehicles (EVs) at the Wisconsin site, though could decide on Mexico, and would make a decision this year.
Over the past year or so Foxconn has announced several deals on the production of EVs with automakers including Fisker, China’s Byton and Zhejiang Geely Holding Group, and Stellantis NV’s Fiat Chrysler unit.
On Friday, Fisker said talks with Wisconsin economic development officials were normal in the process of evaluating potential plant sites. The carmaker said in May it had finalized plans for Foxconn to build vehicles for the electric car startup at a U.S. plant starting in 2023, and Wisconsin was one of four options.
Foxconn aims to provide components or services to 10% of the world’s EVs by 2025 to 2027, posing a threat to established automakers by allowing technology companies a shortcut to competing in the vehicle market. (Reporting by Ben Blanchard in Taipei Additional reporting by Ben Klayman in Detroit Editing by David Evans and Mark Potter)
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As the novel coronavirus continues to spread across the world, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19, the disease the coronavirus causes. The situation remains fluid as more European companies suspend work and US automakers extend shutdown periods.
Here are all the automakers and companies that have elected to halt production in the US and Europe so far. Information on Detroit’s Big Three begins our coverage, followed by all other shutdowns organized by the date automakers announced them. We’ve also compiled a full list of automakers returning to work with plants restarted in some capacity.
Ford shut down all European and North American production on March 19 to help combat the spread of COVID-19. While Ford intended to reopen facilities and restart production on March 30, the company on March 31 delayed that goal indefinitely. However, it plans to start ventilator production at one of its US facilities on April 20. Production of Ford vehicles and engines across the pond is expected to resume on May 4 at the soonest.
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GM joined Ford on March 18 in announcing a total suspension of all North American production starting March 19. The automaker said it would pull its facilities offline in a “cadence” and each plant would receive specific instructions. GM hasn’t made any announcements regarding when its plants will resume normal production, but it is building ventilators and masks at two US GM facilities. The automaker made the decision to build personal protective equipment on its own before the Trump administration forced it to do so by invoking the Defense Production Act.
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Fiat Chrysler Automobiles
FCA joined Ford and GM on March 18 in announcing it would suspend all North American operations to help stop the spread of COVID-19. While GM and Ford haven’t established new dates to restart production, FCA told Roadshow on April 7 it now plans to bring workers back on May 4. An FCA spokesperson originally told Roadshow the automaker’s Italian plants could open on April 14, but as of April 15, the company said it will continue to follow guidelines from the Italian government. The country will remain in a lockdown state until May 3, which leaves a production start at least a few weeks away. The automaker will evaluate other European plants in the coming weeks.
Kia on March 24 said it would suspend production at its manufacturing plant in Georgia starting March 30. The shutdown will last two weeks, and includes a previously planned suspension to retool for new vehicles. The automaker originally planned to restart production on April 13, but named April 27 as the new target date. Kia did not immediately return a request for comment to learn if manufacturing operations has restarted.