VW Makes Massive Investment In Rivian
Volkswagen is investing $5 billion in Rivian, with the new joint venture expected to deliver new vehicles within the next five to ten years.
Rivian's founder and CEO, RJ Scaringe, highlighted that this partnership will expand Rivian’s software and zonal electronics platform through VW's massive global reach. The funding will help pay for the development of Rivian's more affordable models like the R2 and R3.
Brands under the VW Group umbrella like Porsche, Lamborghini, Audi, Bugatti, and Bentley all stand to benefit from Rivian's software expertise. Volkswagen’s in-house software initiatives have faced challenges. The 2019 attempt to unify software development across all its brands has led to a constant stream of leadership changes and project restarts.
This isn't Rivian's first massive cash infusion. In 2019, Ford invested $500 million which followed a $700 million cheque from Amazon. Ford’s investment included plans for a Lincoln SUV, but this project was eventually canceled.
Volkswagen’s $1 billion upfront investment, structured as a convertible note, will become Rivian common stock after regulatory approval. Additional $1 billion payments are expected in 2025 and 2026, with a $2 billion loan tied to the joint venture available in 2026.
This article was co-written using AI and was then heavily edited and optimized by our editorial team.
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