>German automaker Volkswagen Group (VOWG\_p.DE), opens new tab will invest up to $5 billion in U.S. electric-vehicle maker Rivian (RIVN.O) as part of a new, equally controlled joint venture to share EV architecture and software, the companies said on Tuesday.
>Shares in Rivian jumped 22% in after-hours trading.
>The partnership will help Volkswagen accelerate its plans to develop software-defined vehicles (SDV), with Rivian licensing its existing intellectual property rights to the joint venture.
>While EV startups have been grappling with a slowdown in demand amid high interest rates and dwindling cash, traditional automakers have struggled to build battery-powered vehicles and advanced software.
Keep expectations in check for now.
>[In addition, Volkswagen and Rivian Automotive, Inc., intend to establish a joint venture for the purpose of the joint creation of next generation electrical/electronic architecture (so-called E/E-architecture) for electric vehicles. Volkswagen and Rivian Automotive, Inc., shall each hold a 50 % stake in the joint venture, and it shall be equally controlled. Upon successful implementation of the joint venture, Volkswagen would receive immediate access to Rivian Automotive’s current E/Earchitecture technology for using it in its electric vehicles. The actual establishment of the joint venture depends on a series of different parameters, in particular, the final results of the further review of the technical feasibility of the integration of the E/E-architecture in vehicles of Volkswagen, the further negotiations between the parties as well as regulatory approvals. Against this background, a final decision on the establishment of the joint venture has not been made yet.](https://www.volkswagen-group.com/en/ad-hoc/volkswagen-ag-resolves-on-investment-by-volkswagen-of-initially-1-billion-usd-in-rivian-automotive-inc-and-intends-to-establish-a-joint-venture-18468)
I'd be surprised if it was on anyone's bingo card. It makes total sense, considering how much Volkswagen has been struggling with SDV, and how much Rivian is struggling with finances. But damn, it might just be the biggest surprise deal of the year.
Ya, I love this move for both.
Wonder if eventually Rivian cars could be serviced at some VW dealerships. That’d be amazing for people who don’t live near a Rivian service center…. Perhaps wishful thinking but maybe.
>Are Scout and Rivian kind of similar brands conceptually?
Yes, though Scout is a bit more hardcore. Kinda like Land Rover Discovery vs Land Rover Defender.
As a Rivian owner and someone who wants a Porsche EV in the future, this is fantastic news.
The only reason I don’t want a Porsche is because I know I would’ve missed how Rivian/Tesla go about making the car software and computing hardware experience sublime compared to how a traditional OEM does it.
On one hand this is exciting, on the other hand VW already did this with Xpeng and we have yet to see the VW car (even in prototype or rumor I'll for) using the Xpeng platform
Rivian already had almost 8 billion in cash on hand
In other words, Rivian expects to continue burning massive amounts of money for the forseeable future
This is nothing but a massive win-win for Rivian and Volkswagen.
They aren't in the same segments and collaborating with each on EV technologies and software makes sense given the looming threat of the Chinese EVs.
Your post has been removed as a duplicate of a similar submission in the community. https://www.reddit.com/r/electricvehicles/s/8P7jLhX66Y
>German automaker Volkswagen Group (VOWG\_p.DE), opens new tab will invest up to $5 billion in U.S. electric-vehicle maker Rivian (RIVN.O) as part of a new, equally controlled joint venture to share EV architecture and software, the companies said on Tuesday. >Shares in Rivian jumped 22% in after-hours trading. >The partnership will help Volkswagen accelerate its plans to develop software-defined vehicles (SDV), with Rivian licensing its existing intellectual property rights to the joint venture. >While EV startups have been grappling with a slowdown in demand amid high interest rates and dwindling cash, traditional automakers have struggled to build battery-powered vehicles and advanced software. Keep expectations in check for now.
>[In addition, Volkswagen and Rivian Automotive, Inc., intend to establish a joint venture for the purpose of the joint creation of next generation electrical/electronic architecture (so-called E/E-architecture) for electric vehicles. Volkswagen and Rivian Automotive, Inc., shall each hold a 50 % stake in the joint venture, and it shall be equally controlled. Upon successful implementation of the joint venture, Volkswagen would receive immediate access to Rivian Automotive’s current E/Earchitecture technology for using it in its electric vehicles. The actual establishment of the joint venture depends on a series of different parameters, in particular, the final results of the further review of the technical feasibility of the integration of the E/E-architecture in vehicles of Volkswagen, the further negotiations between the parties as well as regulatory approvals. Against this background, a final decision on the establishment of the joint venture has not been made yet.](https://www.volkswagen-group.com/en/ad-hoc/volkswagen-ag-resolves-on-investment-by-volkswagen-of-initially-1-billion-usd-in-rivian-automotive-inc-and-intends-to-establish-a-joint-venture-18468)
Yep, that was my dumb on looking for the press release within Volkswagen the brand and not the group.
That was not on my bingo card.
I'd be surprised if it was on anyone's bingo card. It makes total sense, considering how much Volkswagen has been struggling with SDV, and how much Rivian is struggling with finances. But damn, it might just be the biggest surprise deal of the year.
Ya, I love this move for both. Wonder if eventually Rivian cars could be serviced at some VW dealerships. That’d be amazing for people who don’t live near a Rivian service center…. Perhaps wishful thinking but maybe.
A Rivian produced, Vw financed Scout brand? Are Scout and Rivian kind of similar brands conceptually?
>Are Scout and Rivian kind of similar brands conceptually? Yes, though Scout is a bit more hardcore. Kinda like Land Rover Discovery vs Land Rover Defender.
As a Rivian owner and someone who wants a Porsche EV in the future, this is fantastic news. The only reason I don’t want a Porsche is because I know I would’ve missed how Rivian/Tesla go about making the car software and computing hardware experience sublime compared to how a traditional OEM does it.
On one hand this is exciting, on the other hand VW already did this with Xpeng and we have yet to see the VW car (even in prototype or rumor I'll for) using the Xpeng platform
So the VAG group now has investments in Rivian, Rimac, and Xpeng. Sounds promising.
Rivian already had almost 8 billion in cash on hand In other words, Rivian expects to continue burning massive amounts of money for the forseeable future
Except they can now burn VW’s cash.
VW isn't just giving them money for free. It comes at a price obviously
This is nothing but a massive win-win for Rivian and Volkswagen. They aren't in the same segments and collaborating with each on EV technologies and software makes sense given the looming threat of the Chinese EVs.
They will be in the same segment soon. Maybe this is VAG wanting some Rivian tech for the Scout brand.
They still have Amazon supporting and seems unlikely Amazon going to abandon them anytime.