Volkswagen Puts In Another €1 Billion Into Rivian

Volkswagen is further enhancing its significant investment in Rivian by injecting an additional €1 billion into the American electric vehicle maker. This payment was made after Rivian achieved key financial targets, thereby strengthening the alliance that Rivian needs and which Volkswagen hopes will help address its ongoing software challenges.

This latest capital injection is part of a €4.95 billion agreement established last year. The deal aims to make Volkswagen the largest single shareholder in Rivian, surpassing Amazon, as long as the EV startup continues to meet a series of agreed-upon milestones. While Rivian’s current stake, previously at 8.6 percent following the initial billion-dollar investment, will increase, the exact new percentage has not yet been disclosed.

The partnership centers around a joint venture called Rivian Volkswagen Technologies, which will receive €1.96 billion of the total investment. Its goal is to co-develop the electronic systems and software that will power the next generation of electric vehicles from both companies. The automotive industry widely acknowledges that Volkswagen has faced challenges in developing advanced vehicle software in-house, resulting in costly delays and glitches in its electric vehicle lineup.

Although the collaboration is officially described as mutual, many industry observers see Volkswagen as the primary beneficiary. The first tangible result of this technological partnership is expected to be the VW ID.1, a small electric car set to debut in 2027. Volkswagen aims to sell this vehicle at a starting price of approximately €20,000, with production scheduled to begin in Portugal in September 2027.

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