Volkswagen and Rivian Launch €5.8 Billion Joint Venture to Accelerate Electric Vehicle Transition
SAN JOSE, California, November 13 – German auto giant Volkswagen has officially launched a joint venture with US electric vehicle manufacturer Rivian, committing to a €5.8 billion (US$6.2 billion) investment, €800 million more than previously planned, to accelerate its electric vehicle transition.
Partnership to Produce First Models in 2027
The partnership is expected to produce its first models based on Rivian’s advanced electric car technology from 2027, according to VW Group CEO Oliver Blume, who announced the launch of the joint venture in Palo Alto, northern California, on Tuesday.
Streamlining Electric Vehicle Line-up
Volkswagen, Europe’s largest automaker, aims to leverage Rivian’s innovative electric and software architecture to streamline its electric vehicle line-up.
Collaboration on Technology
The collaboration will focus on a range of technologies, including software systems, control computers, and network architecture.
Addressing Software Development Issues
By adopting Rivian’s platform, Volkswagen hopes to tackle issues with its in-house software development, which has delayed model rollouts in recent years.
Timeline and Operations
The new joint venture is set to commence operations on Wednesday and will be based in Palo Alto with further locations in Europe and North America planned. Most of the team will be sourced from Rivian, with a few members joining from VW. The venture will be jointly led by one manager from each company.
Financial Investment
Of the €5.8 billion total investment, €3.5 billion will go toward a direct stake in Rivian, while €2.3 billion will fund the joint venture, with €1 billion set aside as a loan.
Conclusion
The joint venture between Volkswagen and Rivian marks a significant step in the German automaker’s efforts to accelerate its electric vehicle transition. By leveraging Rivian’s innovative technology and expertise, Volkswagen hopes to streamline its electric vehicle line-up and address software development issues that have hindered its progress.
Frequently Asked Questions
Q: What is the total investment in the joint venture?
A: €5.8 billion (US$6.2 billion)
Q: What is the breakdown of the investment?
A: €3.5 billion for a direct stake in Rivian, €2.3 billion for the joint venture, and €1 billion as a loan
Q: When will the first models be produced?
A: 2027
Q: Where will the joint venture be based?
A: Palo Alto, with further locations in Europe and North America planned