Explainer-Volkswagen's $5 Billion EV Software Bet on Rivian

Reported 9 months ago

Volkswagen plans to invest $5 billion in an electric vehicle software partnership with Rivian, aiming to gain expertise in EV technology where the company lacks experience. The deal includes a joint venture and direct investment, allowing Rivian to develop more models with Volkswagen's funding and expertise. This move could potentially reshape Volkswagen's software strategy and reduce its reliance on its existing software unit, Cariad. However, investors have shown concern over the high investment and integration challenges ahead.

Source: YAHOO

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