Rivian and Volkswagen Get Green Light To Form New Joint Venture
Rivian and Volkswagen recently announced a joint venture, but it first had to pass the scrutiny of the German Federal Cartel Office. The pair got the greenlight, which will see VW making a significant investment in Rivian and billions into building the venture.
Volkswagen is set to give Rivian $3 billion and plans to spend another $2 billion to get the joint venture off the ground, after German officials said the partnership had “no serious competition problems.” That said, it’s worth noting that the German automaker has set performance milestones before Rivian earns the entire amount.
Both companies see a tremendous upside to the joint venture. Rivian is in need of cash and has temporarily cut its production output while it retools its factory in Normal, IL. The company plans to boost output later this year.
VW needs Rivian to help fix its software issues, which have caused delays in EV release schedules. The company’s ID.4 is struggling, with sales dropping 15 percent recently as competitors hit the market with more modern and intuitive tech. It also delayed the Porsche Macan EV due to software issues.
Though the partnership now has the go-ahead, VW’s first vehicle built on Rivian’s software architecture likely won’t land until 2029, more than a year after originally announced. The cash infusion will help Rivian far sooner than that, however, especially as it looks toward the release of the new R2 and R3 vehicles.
[Images: Rivian, Volkswagen]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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