Volkswagen simply purchased a $5 billion stake in Rivian
The money infusion will assist deliver the smaller Rivian R2 to market
The deal offers VW entry to Rivian’s software program and zonal electronics platform
The Volkswagen Group will make investments as much as $5 billion in Rivian, laying the groundwork for collaboration on future EVs, the 2 automakers introduced Tuesday.
VW will initially make investments $1 billion by way of an unsecured convertible observe, pending regulatory approval and different situations, in keeping with a Rivian press launch. That will likely be adopted by further investments of as much as $4 billion, for a complete of $5 billion.
Collaboration between VW and Rivian will embody a three way partnership “to create next-generation electrical structure and best-in-class software program know-how,” the discharge mentioned. Rivian’s software program and zonal electronics platform are anticipated to type the idea for this three way partnership, which VW and Rivian purpose to launch earlier than the top of the 12 months. Each automakers purpose to launch autos ensuing from the three way partnership within the second half of the last decade.
Scout EV plant groundbreaking
VW can even “make the most of Rivian’s current electrical structure and software program platform” within the quick time period. A extra particular timeline wasn’t given, however the launch famous that “important” work has been performed over the previous few months to validate the compatibility of Rivian’s electrical structure and software program with VW autos.
The 2 automakers additionally did not specify what VW autos may profit from Rivian tech, however the apparent candidates are fashions from the brand new Scout EV model that is slated to construct electrical off-roaders at a $2 billion manufacturing unit in South Carolina. Leveraging nostalgia for vehicles made by Worldwide Harvester from 1960 to 1980, Scout has promised a lineup of pickup vehicles and SUVs primarily based on a “newly-designed all-electric platform.”
Rivian R2
Scout has launched little different data on its autos and platform. Based on a November report, VW was contemplating turning to Austria’s Magna fairly than utilizing its personal engineering and improvement assets.
Inexperienced Automotive Experiences reached out to Scout. A spokesperson declined to remark.
Scout CEO Scott Keogh mentioned in a 2023 interview that Scout was aiming for a $40,000 beginning value vary, pretty near the $45,000 base value Rivian is focusing on for its R2 electrical SUV due in 2026. The money infusion from VW will probably assist deliver that mannequin to market.
