Volkswagen Invests Billions in EV Pioneer Rivian
New Partnership Focuses on Electric Vehicle Software Development
Volkswagen and Rivian Join Forces to Create Innovative Vehicle Software
June 25, 2024 — Automotive giants Volkswagen Group and Rivian Automotive Inc. announced a groundbreaking partnership that will see Volkswagen invest up to $5 billion in the electric vehicle (EV) maker. The collaboration aims to revolutionize the automotive industry by focusing on developing cutting-edge vehicle software.
Under the agreement, Volkswagen will initially invest $1 billion in Rivian through an unsecured convertible note that will convert into Rivian shares. The remaining $4 billion will be invested by 2026, bringing the total investment to $5 billion.
The joint venture will be equally controlled by both companies, with each holding a 50% stake. The collaboration will leverage the strengths of both companies to create innovative vehicle software that will power the next generation of electric vehicles.
Volkswagen CEO Herbert Diess expressed excitement about the partnership, stating that it "will accelerate the development of new technologies and strengthen our position in the electric vehicle market." He added that Rivian's expertise in software development and electric vehicle manufacturing will be invaluable assets to Volkswagen.
Rivian CEO R.J. Scaringe echoed Diess's enthusiasm, saying that the partnership "will allow us to scale our business and bring our products to market faster." He emphasized that Volkswagen's global reach and resources will be instrumental in Rivian's growth.
The Volkswagen-Rivian partnership is a testament to the growing importance of electric vehicles and software-defined vehicles. The collaboration will undoubtedly shape the future of the automotive industry, bringing forth innovative technologies that will enhance driving experiences and revolutionize mobility.
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