- Volkswagen will invest up to $5 billion in electric vehicle maker Rivian
- Collaboration comes as competition among EV manufacturers intensifies
- Western Nations are imposing tariffs on Chinese imports
VW to invest up to $5bn in electric vehicle maker Rivian
German car giant Volkswagen (VW) announced plans to invest up to $5 billion in electric vehicle (EV) maker Rivian, creating a joint venture to share technology. Following the announcement, Rivian shares surged nearly 50%.
This collaboration comes as competition among EV manufacturers intensifies and Western nations impose tariffs on Chinese imports. VW will initially invest $1 billion in Rivian, with an additional $4 billion to be invested by 2026. Despite being founded in 2009, Rivian has yet to post a quarterly profit and reported a net loss of over $1.4 billion in the first quarter of 2024.
VW, under pressure from rivals like Tesla and China’s BYD, aims to transition from fossil fuel-powered vehicles. The partnership with Rivian will provide VW with immediate access to Rivian’s software for use in its cars.
The deal also occurs amidst growing competition from Chinese EV makers. The European Union recently announced plans to increase tariffs on Chinese EV imports by up to 38%, citing unfair subsidies. China condemned the tariffs as “protectionism.” The US plans to raise import levies on Chinese EVs from 25% to 100%, and Canada is considering similar measures.
In other news, Tesla is recalling over 11,000 Cybertrucks sold in the US due to issues with windscreen wipers and exterior trim. The vehicles were first sold at the end of November last year.