Ford Motor Company (NYSE: F) could gain $8.2 million in the fourth quarter after it invested in Rivian Automotive Inc (NASDAQ: RIVN)since its public offering in 2021. The company revealed the gain, among other things it would disclose in its fourth-quarter report on February 3.
Ford will also reclassify a $900 million non-cash gain from Rivian in the first quarter of 2021 as a special item. As a result, it will not be part of the adjusted full-year results.
Ford still profits from Rivian
This announcement shows how Ford still profits from Rivian even though they abandoned their plans to partner and develop an electric vehicle. Ford had put $1.2 billion into the start-up since 2018. Moreover, the company had a stake of 12% that accounted for $10 billion in Rivian.
Rivian’s market capitalization has been volatile since 2021. The company’s shares reached a peak of $172. However, they have reduced by 57% due to competition from the electric vehicle market.
Rivian briefly had a higher value than Ford at $100 billion. However, Ford has managed to beat Rivian by reaching a market cap of $100 billion.
Ford makes a deal with a corrupt union
Meanwhile, Ford has opened an electric truck and battery facility worth $5.6 billion in Haywood County, Tennessee. However, the state did little to ensure worker protections before greenlighting incentives of about $900 million before opening the facility.
The worker agreement did not give the employees might to a secret ballot in case a union tried to organize the factory. Furthermore, Ford already has a deal in place with the United Auto Workers (UAW), which is infamous for its corruption.
The agreement between UAW and Ford allows the union access to its employees and their addresses. Additionally, the union could deny workers the ability to use a secret ballot for elections when the UAW organizes through a card check.
During card checks, unions gather employee signatures and present them to an employer who recognizes them immediately. A secret ballot, on the other hand, gives workers the ability to vote anonymously for or against the union.
For this reason, workers are not protected from intimidation by unions. For instance, UAW has a history of harassing and lying to workers to get their signatures.