Rivian-Volkswagen joint venture deal rises to up to $5.8 billion, VW cars expected as early as 2027
The companies said the deal is now up to $5.8 billion, with the first VW models to use Rivian's software and electrical architecture arriving as early as 2027.
Volkswagen Group has increased its planned investment in an announced joint venture with electric vehicle maker Rivian Automotive ahead of the operations launching Wednesday.
And here we go with the race to who dominates EV by 2030. I think there's a chance Tesla will rise but they need to make cheaper cars. As for VW they already got a lot of stocks so this investment should make a difference
Legacy auto is in trouble. The automotive industry is changing completely. Here is where we see the inability to get ahead technologically hindering companies.
Rivian needs money and VW needs tech. This could be a good venture between the two.
Perfect agreement can be reached between the two companies 👍
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The companies in a joint press release Tuesday said the size of the deal is now up to $5.8 billion — an increase from an initial investment of up to $5 billion — with the first VW models to use Rivian's software and electrical architecture arriving as early as 2027.
Shares of Rivian were up by more than 6% during after-hours trading.
The increase in investment was a result of the companies pulling ahead some potential future capital from VW, as well as changes in the deal's structure, including in equity investment, officials said Tuesday during an investor call.
VW Group CEO Oliver Blume during a press conference Tuesday said the German automaker expects to use Rivian's technologies across a wide range of price points, international markets and brands.
The integration of Rivian's software is expected to start with the Volkswagen brand, followed by Audi as well as VW's forthcoming Scout brand, Blume said. He also mentioned "sports cars" could be included but did not specify which brand. VW's brands also include Bentley, Porsche and Lamborghini, among others.
"We're thrilled to see our technology being integrated in vehicles outside of Rivian, and we're excited for the future," Rivian CEO RJ Scaringe said in a statement.
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