- VW and Rivian launch $5.8 billion joint venture
- The move will address slowing global EV demand and increasing competition from Chinese manufacturers
- The collaboration focuses on reducing costs and expediting the development of new technologies
VW and Rivian launch $5.8 billion joint venture
Volkswagen Group (VW) has partnered with U.S. electric vehicle (EV) maker Rivian in a $5.8 billion joint venture aimed at accelerating EV innovation. This move, an expansion from VW’s initial $5 billion pledge, will see both companies sharing advanced technologies to address slowing global EV demand and increasing competition from Chinese manufacturers. Rivian, which has yet to turn a profit, gains a vital funding boost as it prepares to launch its smaller, more affordable R2 SUV next year. Meanwhile, VW plans to integrate Rivian’s technology into its vehicle lineup, with the first models expected by 2027. Â
The collaboration focuses on reducing costs and expediting the development of new technologies. Engineers and developers from both firms will initially collaborate in California, with three additional facilities planned across North America and Europe. The partnership offers VW a chance to strengthen its position as it faces high production costs, softening sales, and slower-than-expected transitions to EVs. For Rivian, the deal helps stabilise operations amid cost-cutting measures and prepares it to compete more effectively in the evolving EV market.
Rivian’s portfolio includes electric SUVs and delivery vans, the latter primarily supplied to its largest shareholder, Amazon. The retail giant has ordered 100,000 electric delivery vehicles, with all units slated for delivery by the decade’s end. Both VW and Rivian are betting that this collaboration will position them better to meet rising competition and shifting consumer preferences in the automotive sector.Â
