Written by Cláudio Afonso | LinkedIn | X
Final week, Volkswagen Group mentioned it was set to speculate as much as $5 billion within the US-based electrical automobile maker Rivian to leverage its expertise and kind a three way partnership.
This Tuesday, the German media outlet Handelsblatt reported that each corporations are in talks to develop their just lately introduced software program partnership into {hardware} collaboration and joint manufacturing.
In keeping with sources conversant in the discussions, the deeper cooperation might additionally doubtlessly contain Volkswagen’s US electrical automobile (EV) model, Scout.
Key among the many discussions is the potential manufacturing of Rivian’s new electrical SUV, the R2, at Volkswagen’s upcoming manufacturing unit in South Carolina. This facility, set to begin operations in 2026, will primarily produce SUVs and pickups beneath Volkswagen’s Scout model, the German outlet reported.
Whereas each corporations haven’t finalized any agreements past the software program sector, the potential for {hardware} collaboration might considerably improve the capabilities and market attain of each automakers.
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Approached by Handelsblatt, a Volkswagen spokesperson declined to touch upon the continuing speculations whereas a Rivian consultant confirmed that no {hardware} cooperation plans are at present in place.
The partnership introduced final week “brings Rivian’s software program and zonal electronics platform to a broader market by way of Volkswagen Group’s world attain and scale”, RJ Scaringe wrote on X.
In an announcement, the German group mentioned that, in case the three way partnership could be established efficiently, Volkswagen “intends to make additional investments in shares of Rivian Automotive, Inc., or within the three way partnership within the complete quantity of 4 billion USD”.
“The extra funding in shares of Rivian Automotive, Inc., could be made in two tranches of 1 billion USD every in 2025 and 2026 and could be contingent on Rivian Automotive, Inc., and the three way partnership attaining sure milestones. With respect to the three way partnership Volkswagen would supply a cost within the quantity of 1 billion USD upon basis of the three way partnership in 2024 and grant a mortgage within the quantity of 1 billion USD in 2026,” VW added.
Written by Cláudio Afonso | LinkedIn | X
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