Rivian and Volkswagen Group Announce Plans for Joint Enterprise – Operations



Rivian’s in-market zonal {hardware} design and know-how platform are anticipated to function the muse for future SDV growth, which might be utilized to each firms’ autos.
Picture: Rivian Newsroom/Volkswagen Newsroom/AF
Rivian Automotive and Volkswagen Group are becoming a member of forces. The 2 automakers introduced their intention to kind an equally managed and owned three way partnership to create software-defined car (SDV) platforms for the businesses’ future electrical autos. An SDV is any car that permits new options and manages operations primarily via software program.
The partnership, anticipated to speed up software program growth for Rivian and Volkswagen, is anticipated to permit each firms to mix their complementary strengths and decrease car prices by rising scale and innovation globally.
Each firms goal to launch autos benefiting from the know-how created inside the three way partnership within the second half of the last decade, which may assist with integrating extra electrical autos into industrial fleets sooner or later. Within the quick time period, the three way partnership is anticipated to allow Volkswagen Group to make the most of Rivian’s present electrical structure and software program platform
“By our cooperation, we’ll convey the perfect options to our autos quicker and at decrease value. […] The partnership suits seamlessly with our present software program technique, our merchandise, and partnerships. We’re strengthening our know-how profile and our competitiveness,” Olive Blume, CEO of Volkswagen Group, mentioned.

Oliver Blume, CEO of Volkswagen Group, and RJ Scaringe, Founder and CEO of Rivian, announce three way partnership plans.
Rivian’s in-market zonal {hardware} design and know-how platform are anticipated to function the muse for future SDV growth, which might be utilized to each firms’ electrical autos. Rivian plans to contribute its electrical structure experience and license present mental property rights to the three way partnership.
“Because the earliest days of Rivian, we now have been targeted on growing extremely differentiated know-how, and it is thrilling that one of many world’s largest and most revered automotive firms has acknowledged this,” RJ Scaringe, Founder and CEO of Rivian, mentioned. “Rivian was created to assist the world transition away from fossil fuels via compelling services, and this partnership is fantastically aligned with that mission.”
Volkswagen Group to Put money into Rivian
Volkswagen Group plans to take a position $5 billion in Rivian to help the strategic partnership’s imaginative and prescient.
Initially, Volkswagen Group will make investments $1 billion in Rivian via an unsecured convertible observe that may convert into Rivian’s frequent inventory topic to sure circumstances upon receiving regulatory approvals and reaching December 1, 2024. Volkswagen Group is anticipated to take a position an additional $4 billion within the transaction.
“Not solely is that this partnership anticipated to convey our software program and related zonal structure to a fair broader market via Volkswagen Group’s world attain, however this partnership additionally is anticipated to assist safe our capital wants for substantial development,” Scaringe mentioned.
Joint Enterprise Plans for This fall Formation
Over the previous months, work has been achieved to check that Rivian’s electrical structure and software program are appropriate with Volkswagen Group’s autos.
The partnership goals to speed up Volkswagen Group’s SDV plans and transition to a pure zonal structure. Every firm will proceed to function their respective car companies individually.
The businesses anticipate the completion of the three way partnership formation within the fourth quarter of 2024.