Ford expects $8.2 billion Q4 gain from Rivian investment

Ford Motor Co. on Tuesday said it expects to book an $8.2 billion gain from its investment in electric vehicle maker Rivian for the fourth quarter of 2021 when it reports earnings Feb. 3.

The automaker carried a roughly 12 percent stake in Rivian when it went public in November after investing more than $800 million in the company. Although the two sides late last year canceled plans to jointly develop a vehicle, CEO Jim Farley told Automotive News that Ford was pleased with the company and happy with its investment.

The Rivian gain was one of a number of special items Ford plans to report when it releases earnings next month.

Ford on Tuesday also said it would reclassify a previous $900 million non-cash gain from Rivian into its special items. That means that figure will no longer be included in its adjusted EBIT forecast.

In addition to the Rivian gain, Ford also expects a non-cash $3.9 billion full-year gain (including a $3.5 billion fourth-quarter gain) from an annual reevaluation of global pension and other post-retirement employee benefits. Ford says it's "mostly attributable to higher discount rates and asset returns."

The automaker will further record $1.7 billion in costs associated with repurchasing and redeeming more than $7.6 billion in high-cost debt in the fourth quarter, as well as a $3.6 billion non-cash tax special item related to changes in Ford's global tax structure.