VW-Shares Grow Volkswagen Grants Rivian a Second Substantial Financial Injection

Source: dpa | Translated by AI 1 min Reading Time

Volkswagen increases its stake in the US partner Rivian after it has met all challenges regarding profit demands. Now, as a reward, there is another financial boost ...

Rivian is a partner of Volkswagen when it comes to the electric architecture for e-cars, such as the ID.1. Rivian has apparently performed well, as VW is now releasing further millions as part of the cooperation, which will have other effects in the background ...(Image: Volkswagen)
Rivian is a partner of Volkswagen when it comes to the electric architecture for e-cars, such as the ID.1. Rivian has apparently performed well, as VW is now releasing further millions as part of the cooperation, which will have other effects in the background ...
(Image: Volkswagen)

The Tesla challenger and VW partner Rivian has performed well and is now receiving 850 million euros (1,000,365,000 USD) from Volkswagen. VW currently holds around 8.5 percent of Rivian. The cash injections are reportedly part of the cooperation between the two. The Wolfsburg (Germany)-based company has been struggling with issues in its in-house software development for years. There have been repeated delays in the launch of several models, sometimes amounting to years.

Volkswagen Could Replace Amazon at the Top

Rivian, on the other hand, developed its own architecture from the start, in which the vehicle electronics are divided into several zones with their own computers, significantly reducing the need for control units. VW had already committed to investing up to $5.8 billion in the project, where Rivian's electronic architecture is set to support VW's electric compact car ID.1 starting in 2027. The first billion flowed immediately last year. Three further installments will follow once agreed project milestones are achieved. In return, Volkswagen's stake in Rivian will increase each time. In the end, Volkswagen could even become the largest single shareholder in Rivian, a position that Amazon currently holds.

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