Volkswagen and Rivian have officially launched their $5.8 billion joint venture, aimed at developing a new electrical architecture and vehicle software platform. The partnership, which kicked off on November 13th, will focus on creating a scalable software platform for both companies’ future models, including subcompact cars, luxury vehicles, and sports cars.
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The joint venture, led by Rivian’s software chief Wassym Bensaid and VW Group’s chief technology engineer Carsten Helbing, will initially operate from Palo Alto, California, with additional sites planned in North America and Europe. Engineers and developers from both companies will contribute to the venture.
As part of the deal, VW will provide Rivian with an initial $1 billion loan, followed by $1.3 billion in shares and an additional $3.5 billion over the next few years. This funding will help Rivian accelerate the production of its R2 vehicle and establish its Georgia manufacturing facility.
The partnership is seen as a strategic move for both companies. VW aims to strengthen its position in the electric vehicle market by leveraging Rivian’s software expertise, while Rivian secures a significant financial boost to support its growth and expansion plans.
The joint venture’s technology will underpin a wide range of vehicles from both companies, including VW Group brands like Audi, Porsche, Scout, and Volkswagen itself. Scout Motors, in particular, will benefit from the new software platform to enhance its electric truck and SUV offerings.
