Friday 22 Nov
German automaker Volkswagen has officially launched a joint venture with American electric vehicle maker Rivian, committing to an investment of €5.8 billion (approximately $6.2 billion), €800 million more than the previous plan, to accelerate its transition to electric vehicles.
The partnership is expected to produce its first models based on Rivian's advanced electric vehicle technology starting in 2027, according to Oliver Blume, CEO of the Volkswagen Group, during the launch of the joint venture in Palo Alto, Northern California on Tuesday.
Volkswagen, Europe's largest automaker, aims to
leverage Rivian's innovative electric vehicle architecture and software to
simplify its electric vehicle lineup. The collaboration will focus on a range
of technologies, including software systems, control computers, and networking
architecture. The two companies announced the collaboration at the end of June,
and in July it was approved by the German antitrust authority.
Of the total €5.8 billion investment, €3.5
billion will be allocated to acquire a direct stake in Rivian, while €2.3
billion will go towards funding the joint venture, with €1 billion earmarked as
a loan.
