Irvine, California, and Wolfsburg, Germany, June 25, 2024—Rivian Automotive (NASDAQ: RIVN) and Volkswagen Group (XETRA: VOW / VWO3) have unveiled plans to form an equally controlled joint venture (JV) aimed at developing next-generation electrical architecture and advanced software technology. This strategic partnership is designed to leverage both companies’ strengths, enhance global innovation, and reduce vehicle costs.
The collaboration will focus on integrating Rivian’s in-market zonal hardware design and technology platform with Volkswagen’s expertise. Rivian will contribute its electrical architecture knowledge and license its intellectual property to the JV. The partnership aims to launch vehicles with this new technology in the second half of the decade, with immediate benefits for Volkswagen using Rivian’s existing architecture to advance its Software-Defined Vehicle (SDV) plans.
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Oliver Blume, CEO of Volkswagen Group, expressed enthusiasm for the partnership: “Our customers will benefit from this targeted collaboration with Rivian, which will bring superior technology to our vehicles more rapidly and cost-effectively. This fits seamlessly with our existing software strategy and strengthens our competitiveness.”
RJ Scaringe, Founder and CEO of Rivian, highlighted the alignment of missions: “Partnering with Volkswagen Group is a significant milestone for Rivian. This collaboration not only broadens the reach of our technology but also supports our growth ambitions. Our mission to transition away from fossil fuels is beautifully aligned with this partnership.”
Financial and Operational Details
Volkswagen plans a $5 billion investment in Rivian, starting with a $1 billion unsecured convertible note, converting into Rivian’s common stock upon regulatory approval and subject to specific conditions by December 1, 2024. Additional investments up to $4 billion will follow, split between direct stock purchases and JV-related funding.
Significant compatibility testing has been conducted, and the JV is expected to be formalized by Q4 2024, pending definitive agreements and regulatory approvals. Lazard is the lead financial advisor for Rivian, with BDT & MSD Partners also advising.
About Rivian
Rivian Automotive is a U.S.-based manufacturer of innovative electric vehicles and accessories, aiming to accelerate the global shift to zero-emission transportation. Known for their advanced technology and commitment to sustainability, Rivian’s vehicles cater to both consumer and commercial markets.
About Volkswagen Group
Volkswagen Group is a global leader in automotive manufacturing, with operations spanning 114 production facilities in 19 European countries and 10 other nations worldwide. In 2023, the Group delivered 9.2 million vehicles and achieved sales revenue of EUR 322.3 billion. The company is committed to shaping the future of mobility through investments in electric and autonomous vehicles, digitalization, and sustainability.
This press release includes forward-looking statements subject to risks and uncertainties. For detailed information on these risks, refer to Rivian’s recent SEC filings.
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