The Volkswagen group announced on Tuesday its intention to invest up to five billion dollars in Rivian, the American manufacturer of electric vehicles. This investment marks the start of a new joint venture equally controlled by the two manufacturers.
The objective is to share the architectures and software of electric vehicles.
Investment Details
Volkswagen’s initial investment will be one billion, followed by an additional four billion. Both companies aim to launch vehicles benefiting from this joint venture before 2030, while continuing their production operations independently. In the short term, Volkswagen will be able to use Rivian’s electrical and software platforms to accelerate the development of its own all-electric products.
Rivian President RJ Scaringe expressed his excitement about the partnership via an emailed statement.
“Since Rivian’s early days, we have focused on developing highly differentiated technologies, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized that.”
According to RJ Scaringe, this partnership will not only expand the reach of Rivian’s software and architecture through Volkswagen’s global presence, but also secure Rivian’s capital requirements for substantial growth.
Implications for Rivian
This partnership with Volkswagen is crucial for Rivian, which is well known for its R1S SUV and R1T pickup truck. The investment will provide the fledgling company with the funds to develop its next model, the R2 SUV, which will be smaller and more affordable. Its launch is planned for the year 2026.
With this partnership, meeting this deadline becomes more and more possible and realistic.
After the deal was announced, Rivian shares jumped 30% in extended Nasdaq trading, increasing the company’s capitalization by more than $3 billion.
Benefits for Volkswagen
Oliver Blum, CEO of Volkswagen, emphasized that this partnership will create a cutting-edge technological architecture. “Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. »
The partnership is interesting because it truly combines the strengths of both companies. New manufacturers wishing to enter the electric vehicle market face difficult access to liquidity. The arrival of Volkswagen in the equation greatly helps Rivian’s situation, and as we have seen, the German giant will benefit from the technologies developed by Rivian.
We certainly haven’t finished talking about this partnership, which should result in the arrival of interesting products for both companies. And, in the end, it is the consumer who wins, because he will find himself faced with more choice.
Original content from auto123.
