Volkswagen invests $5 billion in Rivian joint venture – DW – 06/26/2024

Volkswagen, the world’s second-largest carmaker, announced on Tuesday that it would form a 50-50 joint venture with US electric vehicle (EV) maker Rivian.

German company VW has announced it will invest $5 billion (€4.7 billion) in a deal to jointly develop next-generation software that it and California-based Rivian will share in their vehicles.

Volkswagen said the software would be used in both companies’ vehicles for products scheduled to be released before 2030.

“The partnership will accelerate the software development of the Volkswagen Group and Rivian,” the press release continued.

“Through our collaboration, we will achieve the best solutions for our vehicles more quickly at lower costs,” said Oliver Blume, CEO of VW.

VW is plagued by problems with its own software development company CARIAD, forcing its subsidiaries Audi and Posche to delay the introduction of new electric vehicles by two years, according to the German business daily. Handelsblatt newspaper.

News of the deal gave Rivian shares a 42% after-hours surge.

Founded in 2009, Rivian is valued at around $11 billion on the Nasdaq technology exchange, although it has lost billions on its electric pickup trucks and SUVs so far.

In the first quarter of 2024, the company said it was losing $38,000 per vehicle.

Fear that China will overtake Germany as an automobile country

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js/jsi (AFP, Reuters)

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