Written by Cláudio Afonso | LinkedIn | X
Last week, Volkswagen Group said it was set to invest up to $5 billion in the US-based electric vehicle maker Rivian to leverage its technology and form a joint venture.
This Tuesday, the German media outlet Handelsblatt reported that both companies are in talks to expand their recently announced software partnership into hardware collaboration and joint production.
According to sources familiar with the discussions, the deeper cooperation could also potentially involve Volkswagen’s US electric vehicle (EV) brand, Scout.
Key among the discussions is the potential production of Rivian’s new electric SUV, the R2, at Volkswagen’s upcoming factory in South Carolina. This facility, set to commence operations in 2026, will primarily produce SUVs and pickups under Volkswagen’s Scout brand, the German outlet reported.
While both companies have not finalized any agreements beyond the software sector, the potential for hardware collaboration could significantly enhance the capabilities and market reach of both automakers.
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Approached by Handelsblatt, a Volkswagen spokesperson declined to comment on the ongoing speculations while a Rivian representative confirmed that no hardware cooperation plans are currently in place.
The partnership announced last week “brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and scale”, RJ Scaringe wrote on X.
In a statement, the German group said that, in case the joint venture would be established successfully, Volkswagen “intends to make further investments in shares of Rivian Automotive, Inc., or in the joint venture in the total amount of 4 billion USD”.
“The additional investment in shares of Rivian Automotive, Inc., would be made in two tranches of 1 billion USD each in 2025 and 2026 and would be contingent on Rivian Automotive, Inc., and the joint venture achieving certain milestones. With respect to the joint venture Volkswagen would provide a payment in the amount of 1 billion USD upon foundation of the joint venture in 2024 and grant a loan in the amount of 1 billion USD in 2026,” VW added.
Written by Cláudio Afonso | LinkedIn | X
