Volkswagen Boosts Investment in Joint Venture with Rivian Automotive

Volkswagen Group has increased its planned investment in the joint venture with electric vehicle manufacturer Rivian Automotive. In a joint press release on Tuesday, the companies announced that with the first VW models utilizing Rivian's software and electric architecture expected to arrive as early as 2027, the size of the agreement has risen from an initial investment of up to $5 billion to as much as $5.8 billion. Officials stated that the increase in investment is a result of changes in the deal's structure, including pulling forward some potential capital from VW as well as equity investment.

VW Group CEO Oliver Blume mentioned that the German automaker expects to use Rivian's technologies across a wide range of price points, international markets, and brands. Blume noted that the integration of Rivian's software is expected to begin with the Volkswagen brand, followed by Audi and the upcoming Scout brand from VW. He also mentioned that "sports cars" could be included but did not specify which brand.

Among VW's brands are Bentley, Porsche, and Lamborghini. Rivian CEO RJ Scaringe expressed excitement about seeing their technology integrated into vehicles beyond Rivian and shared his enthusiasm for the future. Both Scaringe and Blume indicated that additional plans, such as battery modules, shared production of vehicles, or the sharing of other hardware components, should be added to the announced joint venture agreement. The joint venture, expected to close in the fourth quarter, will be named Rivian and VW Group Technology, LLC.