? *BREAKING* Rivian & VW Announce Joint Venture -- VW Investing $1B in Rivian and another $4B to form JV for next gen EVs

[Mark_AZR1T]

Rivian continually thinking outside the box. Go R I V I A N!!

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[Dark-Fx]

Is this good news? Other than the obvious that Rivian needs money?

Maybe good news. Lots of JVs end up just being a tophat engineered for a platform, like the Honda Prologue and Acura MDX sharing the ultium platform with the Blazer and Lyriq. Really depends on how much producing JV vehicles affects their cashflow and if it impedes their ability to produce their own vehicles.

 

[sphereobject]

This is amazing news!

But, very vague and I wish we had details. $5 billion is about the amount Rivian needs to build the Georgia plant, so perhaps this will be a JV to build the R2 and Scout at the GA plant on the same platform, with the Scout for the international market and R2 for the domestic market?

Very happy for the Rivian team and very happy this makes it more likely my warranty will not be worthless.

Congrats to the shareholders how have been hanging on!

 

[electruck]

Is this good news? Other than the obvious that Rivian needs money?

As long as Rivian is getting VW's money and VW is getting Rivian's tech, then yeah, good news.

 

[Scoiatael]

I picked the right day to buy some calls.

 

[jjswan33]

Some more info:

Rivian shares soar 30% after Volkswagen takes $1 billion stake

https://www.cnbc.com/2024/06/25/volkswagen-rivian-stake.html

June 25, 2024

Volkswagen is taking a $1 billion stake in electric vehicle startup Rivian, which has been seeking to cut costs and shore up cash amid slower-than-expected adoption of EVs.

The companies also plan to establish a joint venture, which could increase the investment to up to $5 billion until 2026.

The companies announced the deal after markets closed Tuesday – two days ahead of an investor event for Rivian, which has been under pressure from Wall Street due to its cash burn and significant losses.

Volkswagen is now the second legacy automaker to take a stake in the California-based company. Ford Motor was among Rivian’s largest stakeholders, at roughly 12%, alongside Amazon when Rivian went public in 2021. The Detroit automaker sold a majority of its Rivian shares by 2023 after walking back a plan to codevelop EVs with the company.

Rivian reported a loss of $1.45 billion during the first quarter of this year, as it retooled its plant in Normal, Illinois, to launch updated versions of its R1T pickup and R1S SUV EVs ahead of its next-generation vehicles in 2026.

The company has been on a cost-cutting mission for months. It has trimmed staff, retooled its Illinois plant to increase efficiencies and paused construction of a new multibillion-dollar factory in Georgia. That last measure is expected to save more than $2.25 billion in capital spending, including the impact of starting production of Rivian’s next-generation R2 vehicle at its plant in Illinois.

Rivian reported $7.86 billion in cash, cash equivalents and short-term investments to end March, with more than $9 billion in total liquidity.




Volkswagen to invest up to $5 billion in EV maker Rivian as part of tech joint venture

https://www.bloomberg.com/news/arti...on-in-ev-startup-rivian-to-form-joint-venture

June 25, 2024

Volkswagen AG will invest $5 billion to form a joint venture with electric vehicle maker Rivian Automotive Inc., throwing a lifeline to the struggling startup and giving the German automaker access to the American EV company’s technology.

VW said in a release that it will invest $1 billion immediately in Rivian and an additional $4 billion over time. The companies said the new venture will be “equally controlled and owned.” The companies said they will develop “next generation” battery-powered vehicles with leading edge software.

Slightly different reporting from WSJ:

Volkswagen to Invest Up to $5 Billion into EV Maker Rivian

Automakers plan creation of a joint venture to work on vehicle software

Volkswagen Group is investing $1 billion in electric-pickup maker Rivian Automotive, with plans to spend up to $5 billion as part of a software-development partnership.

The deal, disclosed Tuesday, should provide a lift for the balance sheet of the loss-making startup and help lower the cost of Rivian’s next generation of vehicles. For VW, the deal is aimed at bolstering its software unit, which has struggled with quality issues.

VW said it would invest $2 billion in the creation of a jointly-owned software company that uses Rivian’s vehicle technology as the foundation for programs that will go into both automakers’ future vehicles in the latter half of the decade.

The German automaker said it also planned to purchase a $3 billion stake in Rivian over a few years, including the initial $1 billion injection.

The cash provides Rivian a financial cushion as it works toward the launch of new vehicles, which the company has said will be more affordable than its current offerings that start at $70,000.

Write to Sean McLain at [email protected]

 

[Zoidz]

I want to be optimistic, and it's an unexpected yet intriguing partnership. But the lack of commitment VW has to running EA properly has me concerned.....

 

[Mark_AZR1T]

Does this open the door to a possible dealership model for Rivian?

 

[Zoidz]

Does this open the door to a possible dealership model for Rivian?

Excellent thought!

 

[jjswan33]

Does this open the door to a possible dealership model for Rivian?

Or maybe SC capacity, if they have shared software/hardware.

 

[Mark_AZR1T]

From X

RJ Scaringe
@RJScaringe

This is exciting! Volkswagen Group CEO Oliver Blume and I are thrilled to announce the formation of a joint venture between our two companies. This partnership brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and scale, while providing an expected $5B of capital to
@Rivian
as we bring R2 and our next generation of vehicles to market!

 

[Dark-Fx]

Volkswagen Group is investing $1 billion in electric-pickup maker Rivian Automotive, with plans to spend up to $5 billion as part of a software-development partnership.

Not at all what I was thinking here. But VW did have major software issues with their ID vehicle launch. Probably don't want a repeat of that on the Scout program.

 

[Chewy734]

QM Rally Bugatti is my guess. ?

 

[BigE]

Wonder how long before this falls apart like the Mercedes JV.

Hopefully after Rivian gets the first $1B in hand

 

[SilverII]

Shareholder letter - https://assets.rivian.com/2md5qhoea...n_Group_Announce_Technology_Joint_Venture.pdf

Webcast - https://edge.media-server.com/mmc/p/np66dfvk

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