Volkswagen Group has announced a new joint venture with Irvine-based electric-vehicle manufacturer Rivian, which will see an initial investment of $1 billion from Volkswagen and up to $4 billion more over time. This partnership will allow the German car maker to collaborate with Rivian in developing cutting-edge battery-powered vehicles and software.
Both companies plan to launch vehicles utilizing this technology in the latter half of the decade. In addition, this JV will enable Volkswagen Group to utilize Rivian’s existing electrical architecture and software platform.
According to RJ Scaringe, founder and CEO of Rivian, “Since our inception, we have been dedicated towards creating innovative technology. It is truly exciting that one of the world’s most reputable automotive companies has recognized our efforts.”
This announcement comes at a time when there is significant turbulence in the EV market. Fisker recently filed for bankruptcy while Apple abandoned its self-driving EV program after investing approximately $10 billion over ten years.
In March 2020,Rivian had postponed plans for a manufacturing plant worth $5 billion in Georgia; however,the company was granted tax incentives worth$827 million by Illinois last monthto expand operations at their factory locatedin Normal,Illinois.
Followingthe news aboutthe joint venture,Rivianshares sawa sharp increase on Wednesday.Shown above are Oliver Blume,Volkswagen Group CEO,and RJ Scaringe,Rivianceo.
VW Enters Multi-Billion Dollar Joint Venture with Electric Vehicle Manufacturer
German car maker Volkswagen Group has entered into an exciting new partnership with California-based electric vehicle manufacturer Rivian.The two companies have announced plans for a multi-billion dollar joint venture that includes an initial investment of$1billion from VWand potential additional investments totaling up to$4billion.This collaborationwill allow VWto work closelywithRivianto develop advancedbattery-poweredvehiclesandsoftwarefor future production models.In fact,the first cars resultingfrom this partnership are expected to hit the market in the latter half of this decade.
Rivian has been recognized for its innovative technology since its inception, and CEO RJ Scaringe is thrilled that a major player like VW has taken notice. The JV will also give Volkswagen access to Rivian’s existing electrical architecture and software platform, providing even more potential for future advancements.
This announcement comes at a time when there have been some setbacks in the EV market. Fisker recently filed for bankruptcy while Apple abandoned their self-driving EV program after investing an estimated $10 billion over ten years.However,Rivian remains strong with plans to expand operations at their Normal,Illinois factory thanks to tax incentives worth$827million from Illinois last month.
Followingthe news aboutthe joint venture,Rivianshares sawa sharp increase on Wednesday.Volkswagen Group CEO Oliver Blumeand Rivianceo RJ Scaringeare pictured above.
