VW and Rivian announced a joint venture will form to bring Rivian's software expertise into VW products and providing an initial $1 billion in capital into Rivian, potentially up to $5 billion.
The investment is crucial to push the upcoming R2.
“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness.”
OLIVER BLUME, CEO OF VOLKSWAGEN GROUP
This partnership is valuable to VW since its biggest issue is software. VW and Rivian will establish a joint venture for the "next generation electrical/electronic architecture, one of Rivian's strengths.
“We’re very excited to be partnering with Volkswagen Group. Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”
RJ SCARINGE, FOUNDER AND CEO OF RIVIAN
VW's additional investment of $4 billion into Rivian is contingent on Rivian meeting certain milestones.