VW launches $5.8bn tie-up with Tesla rival Rivian
Volkswagen Group (VW) and its electric vehicle competitor Rivian have launched a joint venture, with the German automaker increasing its investment in the partnership.
The companies now value the deal at $5.8 billion (£4.55 billion), up from an initial commitment of $5 billion by VW.
Shares in Rivian, the US electric vehicle maker, rose by over 9% in after-hours trading following the announcement.
The collaboration will allow the companies to share key technologies amid a slowdown in global demand for electric cars and rising competition from Chinese automakers.
This joint venture offers Rivian, which is currently operating at a loss, an important funding source as it prepares to launch its R2 model next year—a smaller, more affordable SUV compared to its current lineup.
Additionally, the partnership enables VW to incorporate Rivian’s technology into its own vehicle offerings.
The first VW models featuring Rivian technology are expected to be available to customers by 2027.
“By combining their complementary expertise, the two companies plan to reduce development costs and scale new technologies more quickly,” the two companies said in a statement.
Under the plan, developers and software engineers from both firms will initially work side by side in California, while three other facilities in North America and Europe will be set up.
