Volkswagen Increases Investment in Joint Venture with Rivian Automotive

Volkswagen Group has increased its planned investment in the joint venture with electric vehicle manufacturer Rivian Automotive. In a joint press release on Tuesday, the companies announced that the size of the deal has risen from an initial investment of up to $5 billion to as much as $5.8 billion, with the first VW models using Rivian's software and electric architecture expected to arrive as early as 2027.

Officials stated that the increase in investment is a result of adjustments in the deal's structure, including the acceleration of potential capital from VW as well as equity investment. Volkswagen Group CEO Oliver Blume noted that the German automaker expects to use Rivian's technologies across a wide range of price points, international markets, and brands. Blume mentioned that the integration of Rivian's software is expected to begin with the Volkswagen brand, followed by Audi and the soon-to-be-launched Scout brand. He also suggested that "sports cars" could be included, though he did not specify which brand.

Among VW's brands are Bentley, Porsche, and Lamborghini. Rivian CEO RJ Scaringe expressed excitement about seeing their technology integrated into vehicles outside of Rivian, stating, "We are thrilled and excited for the future." Both Scaringe and Blume indicated that additional plans, such as the joint production of battery modules, shared components of vehicles, or other hardware elements, should be expected to accompany the announced joint venture agreement.

The joint venture, expected to close in the fourth quarter, will be named Rivian and VW Group Technology, LLC.