Volkswagen has said that it will give up to $5 billion to Rivian, an electric car company that makes the R1S SUV and R1T pickup trucks. Both automakers will collaborate to create a new company whose main goal is to develop new software and electrical designs for future models. The partnership will help Rivian raise the money it needs and help Volkswagen move closer to making software-defined cars. Volkswagen said on Tuesday that it would spend up to $5 billion on Rivian, a new electric company, to create a new joint venture that will be owned and controlled equally and focus on creating a framework for the next generation of electric vehicles. Both businesses hope that the deal will help them fix their flaws: Volkswagen wants to be good at technology, while Rivan needs experience making things and money. Volkswagen put $1 billion into Rivian at first, and they plan to put another $4 billion into it by 2026. As long as the government approves the deal, Volkswagen and Amazon will both have large stakes in Rivian. If the joint venture is approved, V.W. will be able to quickly use Rivian’s current electrical design in its cars. Rivian says that a lot of work has been put into making sure that its design works with Volkswagen cars in the past few months. Overflow of Cash Invoice Pricing and other experts in the field have given Rivian’s present lineup high marks, but the company has needed help increasing production and making money from sales. As late as March, Rivian stopped building a $5 billion complex in Georgia to save money. Rivian’s founder and CEO, R.J. Scaringe, says that the money from Volkswagen will help the company make the next R2 SUV, which will cost at least $45,000. During a press call on Tuesday, Scaringe said of the partnership with Volkswagen, “This is important for us financially.” The partnership may help Rivian in more ways than one. For example, V.W., the world’s second-largest carmaker, has extensive experience in car production. In April, Rivian released its sales predictions for the year. It thinks it will sell about 57,000 cars, which is about a third of what the Volkswagen Group sold every week in 2023.
