The Volkswagen Group will invest up $5 billion into US electric start-up Rivian amid the creation of a joint venture between the two companies, which is intended to design the next generation of software-defined vehicles.
The investment hands Rivian a financial lifeline to secure its mid-term future amid persistent losses, while Volkswagen gets access to Rivian’s future-positioned electrical architecture to accelerate its often cumbersome software development programme.
The resulting architecture developed between the two companies will find its way into vehicles in the second half of the decade, the two said in a joint statement.
“Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost,” VW Group CEO Oliver Blume said.
