Summary
- VW increases stake in Rivian to $5.8 billion
- Joint venture between Rivian and VW officially established
- Rivian R2 in 2026 and a Volkswagen in 2027 will feature new electrical architecture
- Investment breakdown includes $1.3 billion for software development, $3.5 billion to purchase shares, and $1 billion for a potential loan
- Joint venture will focus on developing electrical architecture and software systems for both companies in Silicon Valley with plans for additional sites in the U.S. and Europe.
Article
Volkswagen Group has announced an increase in their investment in Rivian, bringing the total to $5.8 billion. This comes as the two companies officially launch their joint venture, which was initially announced in June. The agreement involves the VW Group providing funding over several years in exchange for access to Rivian’s electrical architecture and software development expertise. The new terms of the deal include $1.3 billion for software development, $3.5 billion for the purchase of Rivian shares, and a potential $1 billion loan from VW to Rivian.
The joint venture between Rivian and the VW Group is scheduled to begin operations on November 13. It will focus on developing and supplying electrical architecture and software systems to both companies, including network hardware and software stacks that allow for over-the-air updates throughout the vehicle’s life cycle. The first vehicle to feature these jointly developed systems will be the Rivian R2 crossover, planned for release in 2026. The additional investment from VW may help bring this lower-priced model to market and allow for further development of other models that Rivian has in the works.
VW Group announced that some Volkswagen brand models are expected to be the first to utilize the new systems in 2027, followed by vehicles from Audi and the new Scout brand. There is also mention of potential use in sports cars, although specific details have not been provided. The joint venture will initially be based in Silicon Valley and will employ around 1,000 engineers. Plans for three additional sites in the U.S. and Europe are in the works to further support the collaboration between the two companies.
Both Rivian and the VW Group expressed openness to additional collaboration in areas such as batteries, whole vehicle platforms, and joint production. However, these potential collaborations would be separate from the current joint venture. It was also mentioned that Rivian will not be involved in the development of the VW Group’s Scalable Systems Platform for next-generation electric vehicles, as it has been delayed due to software issues. The partnership between Rivian and VW is expected to bring innovative new technology to the market and enhance the offerings from both companies.
Ultimately, the increased investment from VW will enable Rivian to further develop its electric vehicle offerings and bring them to market more efficiently. The joint venture between the two companies will focus on developing advanced electrical architecture and software systems that will be used in future vehicles. This collaboration is expected to result in the release of the Rivian R2 crossover in 2026, with other models in the pipeline as well. Additionally, the partnership will see the integration of these systems into future vehicles from Volkswagen and its subsidiary brands, further expanding the reach of the technology developed by Rivian and the VW Group.
Read the full article here
