Volkswagen invests billions in American Rivian. They want access to technology and software development

The German automobile giant Volkswagen announced that in the coming years it could invest up to five billion dollars in the American manufacturer of electric cars Riviana to ensure access to technology and speed up software development.

The Volkswagen Group will invest one billion dollars in the initial phase in Rivian, and by 2026 the value of the investment could rise to five billion dollars if the future joint company achieves the targeted results, according to a press release published in Tuesday after the closing of the American Stock Exchange.

The goal of the partnership is to speed up software development, the German automobile giant pointed out, adding that the establishment of a joint company will provide them with direct access to Rivian’s electric car technology, which they will install in their vehicles.

“Through our cooperation, we will bring the best solutions for our vehicles faster and at a lower price,” said Volkswagen Group CEO Oliver Blume.

“The partnership fits seamlessly into our existing software strategy, our products and partnerships. We are strengthening our technological profile and competitiveness,” Blume emphasized.

Rivian, on the other hand, counts on Volkswagen’s approach to the global market and the help with high production costs.

The American company is currently losing almost 39 thousand dollars on the manufactured vehicle. They have been making losses since the very start of operations in 2009, and in 2024 they want to end that streak. In the first quarter, they operated with a net loss of $1.4 billion, 7.7 percent more than at the beginning of 2023.

Operating expenses increased by 6.6 percent, to 958 million dollars.

“Cooperation will provide us with the best solutions for our vehicles, in a shorter time and at lower costs,” said the founderč and Chief Executive Officer of Rivian RJ Scaringe.