Volkswagen: creates joint venture with Rivian

(CercleFinance.com) - Volkswagen last night announced that it would invest $1bn in US electric vehicle manufacturer Rivian, with the possibility of injecting up to a further $4bn into their joint projects between now and 2026.


The German automaker and the automotive technology company intend to create a joint venture dedicated to electronic/electrical (E/E) architectures, which will be equally owned by the two partners.

We think this is a remarkable deal for Rivian, which will provide welcome liquidity, RBC analysts reacted.

The Nasdaq-listed Rivian Automotive share closed up over 8% last night.

From VW's point of view, the transaction will provide valuable assistance in the software sector, where the group is currently experiencing difficulties, and will also enable it to gain exposure to the US SUV and pick-up market thanks to a significant stake in Rivian, RBC adds.

Volkswagen has, however, made it clear that the release of the $4bn to Rivian or to their joint venture is conditional on its success.


Copyright (c) 2024 CercleFinance.com. All rights reserved.