Reported 11 months ago
On June 26, 2024, the American electric vehicle company Rivian and the German Volkswagen Group announced a joint venture in electric architecture and software technology. Rivian, which has been struggling with losses and lower production volumes, received a $5 billion investment from Volkswagen, causing its stock to surge by 41% to $16.85 on June 26. Volkswagen plans to invest a total of $10 billion in Rivian, with $1 billion initially in convertible bonds and the remaining $4 billion by the end of 2026. This partnership will allow Rivian to increase the production of its R2 electric SUV and resume construction of a factory in Georgia. By collaborating with Volkswagen, Rivian aims to focus on integrating network architecture, topology, V-CPU, and related software platforms. Volkswagen is expected to use Rivian's electric architecture and software stack in its vehicles from 2025 onwards. The joint venture, set to be established in the fourth quarter, will have both companies sharing leadership roles, with Rivian appointing a CTO and Volkswagen a COO. This cooperation marks Volkswagen becoming the second traditional automaker to invest in Rivian after Ford. Despite this partnership, Volkswagen assures that its $20 billion plan to construct an EV factory in Southern California will proceed as planned.
Source: YAHOO