Written by Cláudio Afonso | LinkedIn | X
Rivian and Volkswagen Group announced Tuesday the next step of its partnership revealed last July. Named Rivian and Volkswagen Group Technologies, the joint venture has a total deal size of up to $5.8 billion (up from $5 billion) and kicks off this Wednesday, November 13.
Aiming to offer customers “the best technological solution as early as possible,” both companies will allocate developers and software engineers to the joint venture. The offices will be split between four locations in America and Europe starting with Palo Alto, California.
Upon closing of the joint venture, Volkswagen Group will invest “about $1.3 billion” in exchange for background IP licenses and a 50% equity stake in the venture, according to both carmakers.
Rivian’s electrical architecture and software technology stack will be used across several future models of the Volkswagen Group with the first ones expected to be launched in early 2027.
Rivian’s chief executive RJ Scaringe said in a statement that the “finalization of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles. We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future. Rivian will continue to stay focused on creating best in class products and services that benefit our customers, helping to drive EV adoption.”
As of the time of writing, Rivian shares are trading 4.1% higher at $11.02 after having dropped 4% on Tuesday’s session.
Last June, Volkswagen Group said it was set to invest up to $5 billion in the US-based electric vehicle maker Rivian to leverage its technology and form a joint venture.
The partnership “brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and scale”, Rivian‘s CEO RJ Scaringe wrote on X.
In a statement, the German group said that, in case the joint venture would be established successfully, Volkswagen “intends to make further investments in shares of Rivian Automotive, Inc., or in the joint venture in the total amount of 4 billion USD”.
Written by Cláudio Afonso | LinkedIn | X
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