What Would GM Gain By Investing In Rivian?

The news that General Motors is contemplating investing in startup pickup maker Rivian is troubling for a multitude of reasons that have nothing to do with the quality and engineering of Rivian's slick-looking battery-powered truck.

First, there's the optics of the situation.

GM is closing plants when it is solidly profitable. If GM is so concerned about future profitability, how could investing tens of millions of dollars -- or more -- in an unknown product from an unknown company be wise when many internal issues could use funding to make GM's business healthier?

scenicbyway12 - 2/19/2019 2:34:13 PM

+5 Boost

A better grill.

PUGPROUD - 2/19/2019 3:08:15 PM

+2 Boost

A developed product and small dynamic engineering group which they will suffocate with their bureaucracy and "you cannot continue with your way, we know better and don't do things that way at GM."

malba2367 - 2/19/2019 3:32:21 PM

+2 Boost

Probably so they can get access to the EV technology in the future. Startups like this have almost unlimited access to capital since they are a “tech” company. Look at Tesla as an example.

runninglogan1 - 2/19/2019 3:33:34 PM

+2 Boost

They probably gain access to some cool new proprietary technology.

They could also make some money down the line if Rivian gains in value exponentially like Tesla did.

malba2367 - 2/19/2019 3:36:01 PM

+3 Boost

On the flip side GM could help Rivian with the logistics of manufacturing vehicles. The logistics and supply chain management of building automobiles is one of the most complex business processes out there...GM may be able to get in at a discount because they bring this know-how.

MDarringer - 2/19/2019 10:01:24 PM

+2 Boost

nothing

OneOfOne - 2/20/2019 10:05:39 AM

0 Boost

more shitty employees