According to Reuters, on November 12, German Automotive Manufacturers Volkswagen Group and American electric vehicle startup Rivian announced that Volkswagen will increase its investment in RIVIAN, which has increased by 16%to 5.8 billion US dollars to start the two parties to start the two parties. The planned joint venture jointly develops electric vehicle architecture and software.
The two companies said that the joint venture between the two parties RIVIAN and VW Group Technology LLC aims to integrate advanced electrical infrastructure and RIVIAN software technology to provide support for the future of all related model segments (including mini cars) in the future. Essence
Volkswagen Group plans to invest 5.8 billion US dollars from Rivian and its joint venture by 2027, including the first batch of US $ 1 billion of convertible bills.
Analysts said that Volkswagen Group will invest $ 1.3 billion for intellectual property permits and equity, and will invest as much as US $ 3.5 billion for future equity, bills and debts. All these investment are linked to specific milestones.
Analysts pointed out that joint venture with Rivian may help alleviate the problems encountered by Cariad, a subsidiary of Volkswagen Group. CARIAD has been troubled by product delay and losses since its establishment.
Rivian’s chief software officer Wassym Bensaid and Carsten Helbing, chief technical engineer of Volkswagen Group, will lead the joint venture. The developers and engineers of the joint venture will initially work in Palo Alto, California, and three other office places are under development.
At present, Rivian is planning to launch a smaller and more affordable R2 SUV model. This joint venture will use RIVIAN’s existing technology to launch the RIVIAN R2 model in the first half of 2026, and it may be launched in 2027 to launch Volkswagen Group’s models.
“The cooperation and transactions of this time with Volkswagen Group brought capital guarantee with Volkswagen Group. This can not only ensure that RIVIAN has successfully launched the R2 model in the Normal factory in the United States. Ensure the smooth production and production growth of our R2 models in the US Georgia factory, and enable RIVIAN to achieve positive cash flow.
Rivian R2 is the first model with a new architecture that will be produced in the factory in Normer, Illinois. Rivian has postponed the construction of the Georgian factory and applied for US federal loans last month to initiate the construction of the factory.
After the above report was released, RIVIAN’s stock price rose nearly 9%in the after -market transactions, valuation of more than $ 11 billion.