Rivian and Volkswagen have announced a joint venture initially worth $ 1 billion to create the next generation of software-defined vehicles for both companies. Future investments and loans adding up to an additional $4 billion will occur in 2025 and 2026. 

The venture will be equally owned and controlled by both companies to lower the cost per vehicle of both companies' vehicles. Rivian will contribute its electrical propulsion and battery expertise and license its software to the joint venture. The move gives Volkswagen access to Rivian's current EV propulsion designs to accelerate the rollout of VW Group vehicles.

Rivian points out that this agreement does not cover areas such as chassis or non-propulsion-related component design. This means that the VW group's upcoming Scout brand will not feature badge-engineered Rivians.

The investment will provide Rivian with some much-needed cash as it builds a new production facility in Georgia and gears up for the production of the Rivian R2 and Rivian R3.

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This should help Rivian greatly, very positive from my view point.

On 7/20/2024 at 11:01 AM, G. David Felt said:

This should help Rivian greatly, very positive from my view point.

Everyone loves cash. 

This reminds me, @Drew Dowdell, is there anything left of the Rivian/Ford relationship? Did that just muster out or are they still partnering for something? 

47 minutes ago, ccap41 said:

This reminds me, @Drew Dowdell, is there anything left of the Rivian/Ford relationship? Did that just muster out or are they still partnering for something? 

Ford sold out of most of their shares after the share value plummeted while Rivian was losing piles of cash.  Ford had to write off a $5.4 billion loss on their books because of some accounting things I don't understand. They only put in $500 million. 

1 hour ago, Drew Dowdell said:

Ford sold out of most of their shares after the share value plummeted while Rivian was losing piles of cash.  Ford had to write off a $5.4 billion loss on their books because of some accounting things I don't understand. They only put in $500 million. 

I agree, never really understood the short-term investment and lack of not willing to benefit from Rivian. Some stupid leadership at Ford for sure.

15 minutes ago, G. David Felt said:

I agree, never really understood the short-term investment and lack of not willing to benefit from Rivian. Some stupid leadership at Ford for sure.

Perhaps Ford is too beholden on the stock market and investors and analysts expecting a huge ROI in a quarter...incapable of thinking long term for investments...