The big challenge for Rivian, the electric vehicle maker known for its innovative electrical and software systems, has long been reaching the next level of growth.
That stage came within reach in June when the California-based company and Volkswagen announced a joint venture that included a $5 billion cash injection from the German automaker.
And now that effort is officially starting, with an additional $800 million investment from VW and a near-term goal: developing a common manufacturing and technology platform that will power Rivian's upcoming R2 SUV and VW's Scout electric vehicles, as well as other upcoming models should be used.
“The [joint venture] is highly complementary and reflects Rivian’s industry-leading software and electrical hardware technology, as well as Volkswagen Group’s significant global reach and industry-leading vehicle platform capabilities,” the companies said in a statement.
The challenge for Volkswagen was to develop its own software and electrical systems. For global automakers, it's about moving to producing “software-defined vehicles” (SDVs) whose functionalities and digital experiences can be expanded over time.
The companies plan to leverage Rivian's electrical architecture and software technology stack to enable the launch of Rivian's R2 midsize SUV in the first half of 2026 and support the launch of Volkswagen models through 2027.
During a conference call, Volkswagen boss Oliver Blume said that the next-generation platform will initially be used for Volkswagen brand vehicles, followed by Audi, Scout, Porsche and all other brands.
Volkswagen's venture and capital injection are also expected to provide much-needed support to Rivian, which has struggled with delivery problems this year.
In August, the electric vehicle manufacturer had to temporarily stop production of the delivery vans used by Amazon.com due to a lack of parts. Amazon remains Rivian's largest investor with a 16% stake.
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