Volkswagen is investing 5 billion dollars in Rivian

Volkswagen is planning to make a $5 billion investment in the electric vehicle manufacturer Rivian to engage in joint production. While the initial stage of the investment will be $1 billion, an additional $4 billion investment is expected to be made over time.

Joint Venture and New Vehicles

The joint venture aims for VW Group’s controlled brands Audi, Porsche, Lamborghini, and Volkswagen to produce vehicles together with Rivian. The new vehicles to be produced are expected to be introduced after 2025.

R2 Electric Vehicle and Impact of the Investment

The investment announced by Rivian CEO RJ Scaringe is planned to assist the company in introducing its next-generation R2 electric vehicle to the market starting in 2026. R2 is expected to be sold with a price tag of $45,000.

Benefits of VW and Rivian Partnership

The partnership between Rivian and VW will provide access to VW’s extensive sales and support network, allowing Rivian to expand its market. As a result, it will be possible to see Rivian vehicles in countries where VW is present.

Technology and Software Sharing

VW and Rivian aim to offer the new regional architecture and vehicle software used in the second-generation R1 vehicles of the partnership to a wider market. VW will focus on electric vehicle production by utilizing the technologies developed by Rivian.

• Volkswagen will invest $5 billion in Rivian.
• The initial stage of the investment will be $1 billion, with the remaining amount to be invested over time.
• The joint venture aims to produce new vehicles with Audi, Porsche, Lamborghini, and Volkswagen brands.
• Rivian’s R2 electric vehicle will be launched in 2026.
• R2 is expected to be sold at a price of $45,000.