The VW group announced that it will invest €5.5 billion in the American company Rivian to create a joint venture controlled by both companies, which will allow the development of an electric architecture intended for future models of both companies.
With VW’s capital injection, Rivian will be able to finalize the R2, which is expected to hit the market in 2026, as well as the R3, which is planned for later.
Additionally, VW will benefit from Rivian’s patents, which will be licensed to the joint venture, as well as from software development to be incorporated into its models starting in 2027.
This is exciting! Volkswagen Group CEO Oliver Blume and I are thrilled to announce the formation of a joint venture between our two companies. This partnership brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and… pic.twitter.com/11XVNUo89J
— RJ Scaringe (@RJScaringe) June 25, 2024
In this way, the R2 will be the first vehicle to use software from the joint venture, with plans for its use in new VW models, including vehicles from the Group’s brands, such as Audi, Porsche, Lamborghini, and Bentley.
The goal of the new joint venture is to “reduce development costs and scale new technologies as quickly as possible, in order to offer customers the best technological solution as early as possible”, reveals Rivian in a statement.
“The partnership with Rivian is the next logical step in our software strategy. With its implementation, we will strengthen our global competitive and technological position. The launch of the joint venture demonstrates the potential we want to leverage together in the coming years. We have a clear plan to provide our customers with the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches, and a competitive cost base driven by synergies.”, said Oliver Blume, CEO of the Volkswagen Group.
Despite weak demand for electric vehicles, the VW Group remains committed to its strategy of launching 25 electric models in the North American market by 2030.
