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?
Amazon will lead a $700 million investment in Rivian, we learned last week.
GM CEO Mary Barra had nothing new to say about the automaker's potential investment at an event Monday, so apparently nothing has been finalized.