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Supply Chain News

VW and Rivian establish joint venture

Close-up of a black car with shiny bodywork and rims in a row of parked vehicles.

Cost optimization in vehicle production

The Volkswagen Group and Rivian Automotive are establishing a joint venture with the intention of jointly developing next-generation electric architecture and software technology . Both companies will receive equal shares in the joint venture. This cooperation is intended to combine the strengths of the companies and thus reduce the costs per vehicle.

RJ Scaringe, founder and CEO of Rivian, emphasizes: "This partnership will not only make our software and associated zonal architecture accessible to an even broader market through the global reach of the Volkswagen Group, but will also secure our capital requirements for significant growth."

The Volkswagen Group also says that the partnership is an ideal fit with the existing software strategy, products and partnerships. This will strengthen VW's technology profile and competitiveness.

Investment of 5 billion euros

The foundation is expected to be completed in the fourth quarter of 2024.

According to the information, Rivian plans to license existing intellectual property rights over the electrical architecture to the joint venture.

In the second half of the decade, both companies intend to launch vehicles based on the technology developed in the joint venture. Both companies will retain their separate vehicle businesses.

Volkswagen is also planning to invest 5 billion dollars in Rivian. The aim is to promote joint cooperation and technological developments.

About Rivian

Rivian, an American automobile manufacturer, specializes in the construction of electric vehicles and accessories. The aim is to accelerate the global transition to zero-emission mobility and energy.

About Volkswagen

One of the world's leading automobile manufacturers, the Volkswagen Group, has its headquarters in Wolfsburg, Germany. The Group has 114 production plants and around 684,000 employees worldwide. VW sells its vehicles in over 150 countries.

The Volkswagen Group wants to drive forward the future of mobility by investing in electric and autonomous vehicles, digitalization and sustainability.

Group sales amounted to 322.3 billion euros in 2023.

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