If selling vehicles is part of your business, then why not put money forth to help build more of them.
Cox Automotive controls prestigious brands like Kelley Blue Book, Autotrader, and Manheim, but it will also be part of another one: Rivian.
The company says it is due to a “unique approach to building an electrified future” and a “commitment to environmental change.” But the real reason is probably only one: Rivian seems to be a pretty good investment. Amazon and Ford realized that and put more money in the company: $700 million and $500 million, respectively.
The intriguing aspect is that Cox Automotive has always taken care of the automotive chain after the car production is complete. In other words, it deals with selling, servicing and evaluating vehicles. This is probably their first move into production, even if not in a direct fashion.
According to the press release, Cox Automotive also wants to “explore partnership opportunities in service operations, logistics, and digital retailing.” This last activity is the one that makes more sense.
Instead of creating a whole digital selling structure for its cars, Rivian can perfectly use one Cox Automotive has developed for its brands. RJ Scaringe, Rivian’s founder and CEO, makes that very clear.
“We are building a Rivian ownership experience that matches the care and consideration that go into our vehicles. As part of this, we are excited to work with Cox Automotive in delivering consistent customer experience across our various touchpoints. Cox Automotive’s global footprint, service and logistics capabilities, and retail technology platform make them a great partner for us.”
If Cox Automotive invested in Tesla, would it have helped the company’s car servicing be quicker? More than that, will Cox Automotive help Rivian avoid similar issues? It will be very enlightening to follow what happens next.