Volkswagen Group has introduced it should make investments as much as USD5 billion (round RM23.5 billion) in Rivian as a part of a brand new three way partnership specializing in next-generation electrical car (EV) structure and software program.
Every firm will proceed to function their manufacturing operations individually, however will maintain an equal 50% stake within the three way partnership, which, upon profitable implementation, will present Volkswagen Group with entry to Rivian’s E/E (electrical/digital) structure.
Rivian CEO Robert Joseph Scaringe advised Reuters the funding will present the corporate with the funding wanted to develop its inexpensive and smaller fashions, specifically the R2 set to be delivered in 2026 in addition to the R3/R3X.
In its launch, the German firm stated the precise institution of the three way partnership is dependent upon a collection of various parameters, together with technical feasibility of the combination of the E/E structure in Volkswagen autos.
Beneath the phrases of the settlement, Volkswagen Group will initially make investments USD1 billion (RM4.7 billion) in Rivan via an unsecured convertible word that may convert right into a direct shareholding within the latter firm, topic to the required regulatory approvals earlier than December 1 this yr.
In case the three way partnership is established efficiently, Volkswagen Group intends to make additional investments in shares of Rivian, together with two tranches of USD1 billion every in 2025 and 2026. Volkswagen Group may even present a cost of USD 1 billion upon basis of the three way partnership in 2024 and grant a mortgage within the quantity of USD 1 billion in 2026 – all of it combination in a complete of USD5 billion by 2026.
Each corporations goal to launch EVs with know-how created throughout the three way partnership by the second half of 2030. Within the brief time period, the three way partnership will allow Volkswagen Group to make use of Rivian’s present EV structure and software program platform. This partnership may even serve to speed up Volkswagen Group’s software-defined car (SDV) plans and transition to a pure zonal structure as seen with the refreshed R1T and R1S.
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