Volkswagen and Rivian launch $5.8 billion joint venture to develop electric vehicle technology

Volkswagen and Rivian have officially launched their $5.8 billion joint venture, Rivian and VW Group Technology, LLC, on November 13. This partnership aims to develop new electric vehicle software and architecture, with the first model expected in 2027. Rivian will receive an initial $1 billion loan from VW, followed by $1.3 billion in shares and an additional $3.5 billion over the coming years. The venture will support various models from both companies, including Rivian's R2 vehicle and offerings from VW's brands like Audi and Porsche. The collaboration is seen as beneficial for both companies. VW gains access to Rivian's software expertise, while Rivian secures crucial funding to support its production plans and navigate financial challenges. Scout Motors, VW's adventure brand, will also benefit from the new technology.