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The German antitrust body has approved the joint venture between Volkswagen Group and Rivian, marking a significant milestone for the collaboration to advance electric vehicle technology and software. This strategic partnership involves Volkswagen investing up to $5 billion in Rivian, with an initial investment of $1 billion followed by subsequent investments over the next few years.
The joint venture will focus on developing next-generation electrical and electronic architecture and software-defined vehicles. Volkswagen plans to leverage Rivian’s existing technology to accelerate its efforts in the EV market, particularly in developing software and electrical systems that will be critical for future models.
Volkswagen’s CEO, Oliver Blume, emphasized that the partnership would enable both companies to bring superior solutions to market more quickly and cost-effectively. The collaboration will also support Rivian in ramping up production at its existing facilities in Illinois and its new plant in Georgia, contributing to its goal of achieving positive free cash flow and scalable production.
The joint venture, expected to be fully operational by the fourth quarter of 2024, will be led by co-CEOs from both companies. This strategic move allows Volkswagen to enhance its technology profile and competitive edge while providing Rivian with significant financial support and technological integration.
The approval from the German antitrust body is a crucial step in formalizing this joint venture, which aims to set new standards in the EV industry by combining the strengths of both companies in innovation and production.