Faster, Leaner, More Efficient: Rivian and Volkswagen Group Announce the Launch of their Joint Venture
Rivian and Volkswagen Group have announced a joint venture worth up to $5.8 billion to develop next-generation electrical architecture and software technology for electric vehicles. The venture, named 'Rivian and VW Group Technology, ', will be co-led by Wassym Bensaid and Carsten Helbing, with teams initially based in Palo Alto.
The collaboration aims to support Rivian's R2 launch in early 2026 and Volkswagen's first models by 2027. Volkswagen's initial investment includes a $1 billion convertible note and $1.3 billion for IP licenses and 50% equity stake, with up to $3.5 billion additional investment tied to future milestones.
Rivian e Volkswagen Group hanno annunciato una joint venture del valore di fino a 5,8 miliardi di dollari per sviluppare architetture elettriche di nuova generazione e tecnologie software per veicoli elettrici. La joint venture, chiamata 'Rivian e VW Group Technology', sar脿 co-guidata da Wassym Bensaid e Carsten Helbing, con team inizialmente basati a Palo Alto.
La collaborazione mira a supportare il lancio della R2 di Rivian all'inizio del 2026 e i primi modelli di Volkswagen entro il 2027. L'investimento iniziale di Volkswagen include un鈥檕bbligazione convertibile da 1 miliardo di dollari e 1,3 miliardi di dollari per licenze IP e una partecipazione del 50%, con ulteriori investimenti di fino a 3,5 miliardi di dollari legati ai futuri traguardi.
Rivian y Volkswagen Group han anunciado una empresa conjunta valorada en hasta 5.8 mil millones de d贸lares para desarrollar arquitecturas el茅ctricas de pr贸xima generaci贸n y tecnolog铆a de software para veh铆culos el茅ctricos. La empresa, llamada 'Rivian y VW Group Technology', ser谩 co-dirigida por Wassym Bensaid y Carsten Helbing, con equipos inicialmente basados en Palo Alto.
La colaboraci贸n tiene como objetivo apoyar el lanzamiento de la R2 de Rivian a principios de 2026 y los primeros modelos de Volkswagen para 2027. La inversi贸n inicial de Volkswagen incluye un bono convertible de 1 mil millones de d贸lares y 1.3 mil millones para licencias de propiedad intelectual y una participaci贸n del 50%, con hasta 3.5 mil millones de d贸lares adicionales de inversi贸n vinculados a hitos futuros.
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Rivian et Volkswagen Group ont annonc茅 une coentreprise d'une valeur allant jusqu'脿 5,8 milliards de dollars pour d茅velopper des architectures 茅lectriques de nouvelle g茅n茅ration et des technologies logicielles pour v茅hicules 茅lectriques. La coentreprise, nomm茅e 'Rivian et VW Group Technology', sera co-dirig茅e par Wassym Bensaid et Carsten Helbing, avec des 茅quipes initialement bas茅es 脿 Palo Alto.
La collaboration vise 脿 soutenir le lancement de la R2 de Rivian d茅but 2026 et les premiers mod猫les de Volkswagen d'ici 2027. L'investissement initial de Volkswagen comprend une note convertible de 1 milliard de dollars et 1,3 milliard de dollars pour des licences de propri茅t茅 intellectuelle et une participation de 50 %, avec un investissement suppl茅mentaire de 3,5 milliards de dollars en liaison avec des 茅tapes futures.
Rivian und Volkswagen Group haben ein Joint Venture im Wert von bis zu 5,8 Milliarden US-Dollar angek眉ndigt, um elektrische Architektur und Softwaretechnologie der n盲chsten Generation f眉r Elektrofahrzeuge zu entwickeln. Das Joint Venture, das den Namen 'Rivian und VW Group Technology' tr盲gt, wird gemeinsam von Wassym Bensaid und Carsten Helbing geleitet, wobei die Teams zun盲chst in Palo Alto angesiedelt sind.
Die Zusammenarbeit zielt darauf ab, den Launch von Rivians R2 Anfang 2026 und die ersten Modelle von Volkswagen bis 2027 zu unterst眉tzen. Die anf盲ngliche Investition von Volkswagen umfasst eine wandelbare Anleihe 眉ber 1 Milliarde US-Dollar und 1,3 Milliarden US-Dollar f眉r IP-Lizenzen sowie einen 50%igen Eigenkapitalanteil, wobei bis zu 3,5 Milliarden US-Dollar zus盲tzliche Investitionen an zuk眉nftige Meilensteine gekn眉pft sind.
- Major strategic partnership worth $5.8B with Volkswagen Group
- Initial $1B investment already secured via convertible note
- Additional $1.3B investment for IP licenses and 50% equity stake
- Cost reduction through shared development and technology scaling
- Successful demonstration of technology integration within 12 weeks
- Significant future investment ($3.5B) dependent on meeting milestones
- No revenue generation until 2026-2027 when first models launch
- High capital requirements for development and implementation
Insights
This strategic JV represents a significant milestone, with VW committing up to
The partnership offers substantial cost synergies in R&D and platform development while accelerating Rivian's path to profitability. This validates Rivian's technology and provides important capital infusion, potentially reducing cash burn. VW's global scale could significantly expand Rivian's market reach, particularly beneficial for the upcoming R2 launch.
The rapid development of a demonstrator vehicle in just 12 weeks showcases impressive technical compatibility between Rivian's modern architecture and VW's traditional platforms. The focus on zonal architecture and over-the-air updates positions this JV at the forefront of Software Defined Vehicles (SDV) development.
The technology sharing agreement could accelerate development cycles and reduce costs across both companies' product lines. Rivian's software expertise combined with VW's manufacturing scale creates a powerful synergy for future EV platforms, particularly beneficial for the mass-market segment.
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New joint venture (JV) with a total deal size of up to
$5.8 billion - Engineers join the JV to create electric architecture and software for next generation Software Defined Vehicles (SDV).
- JV to be co-led by Wassym Bensaid (Rivian) and Carsten Helbing (Volkswagen Group).
- Oliver Blume, CEO Volkswagen Group: 鈥淭he partnership with Rivian is the next logical step in strengthening our global competitive and technological position.鈥
- Rivian CEO RJ Scaringe: 鈥淲e鈥檙e thrilled to see our technology being integrated in vehicles outside Rivian 鈥 this is an important enabler to help accelerate EV adoption.鈥
The joint venture will be headed by Wassym Bensaid (Rivian) and Carsten Helbing (Volkswagen Group). Developers and software engineers from both companies will join the joint venture. Teams will be based in
Oliver Blume, CEO of Volkswagen Group, said: 鈥淭he partnership with Rivian is the next logical step in our software strategy. With its implementation, we will strengthen our global competitive and technological position. Today鈥檚 launch of the joint venture demonstrates the potential we want to leverage together in the coming years. We have a clear plan to offer our customers the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches, and a competitive cost base driven by synergies.鈥
RJ Scaringe, Founder and CEO of Rivian, said: 鈥淭oday鈥檚 finalization of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles. We鈥檙e thrilled to see our technology being integrated in vehicles outside of Rivian, and we鈥檙e excited for the future. Rivian will continue to stay focused on creating best in class products and services that benefit our customers, helping to drive EV adoption.鈥
The JV will aim to use the existing Rivian electrical architecture and software technology stack, enabling the launch of Rivian鈥檚 R2 in the first half of 2026 and support the expected launch of the first models from the Volkswagen Group as early as 2027.
The JV will evolve this modular and flexible state-of-the-art electrical architecture. It will scale the technology across a wide range of price points and international markets, paving the way for new generations of high-volume vehicles that are fully capable of advanced automated driving functions and can integrate over-the-air updates (OTA) and upgrades. Customers will regularly receive new software updates, increasing the added value throughout the entire lifecycle of the vehicle.
Teams from Rivian and Volkswagen Group have already successfully demonstrated the potential of their collaboration. In just twelve weeks, the team developed an initial drivable demonstrator vehicle. A Volkswagen Group vehicle has been retrofitted to run on Rivian鈥檚 proven in-market zonal hardware design and integrated technology platform. The drivable demonstrator vehicle not only highlights the scalability and integration capabilities of both companies, but it also further proves the concept for the joint venture.
Carsten Helbing, designated future co-CEO of the joint venture, said: 鈥淲e have made a successful start. Over the past few months, we鈥檝e created the framework for bringing together the JV teams and pooling our resources. We are thrilled with the rapid progress we have achieved in the preparatory phase. This has laid the foundation for our future success.鈥
Wassym Bensaid, co-CEO of the joint venture, said: 鈥淲e鈥檙e excited to have entered into this joint venture, and welcome colleagues from both Rivian and Volkswagen Group to our new venture. The aim of the joint venture is to speed up innovation, increase scale and lower the cost of owning an EV for millions of people around the world. I鈥檓 hugely impressed by the work done already. While the demonstrator vehicle only scratches the surface of what is possible, it鈥檚 incredibly exciting to see what is possible when a new OEM and a legacy automaker work closely together.鈥
Volkswagen Group plans to invest up to
Through the partnership, Volkswagen Group aims to strengthen consumer benefits surrounding innovation, scalable platform and cost savings potential for both sides, as well as enhancing its R&D cost efficiency and thus sustainably reduce overall expenditure in this area.
Rivian will host a public call for its investors at 2pm PT / 5pm ET today. Please find the dial in .
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding receipt of regulatory approvals, the parties entering into definitive agreements, the formation of the JV, the expected benefits from the partnership, the future investments in Rivian shares and the investments related to the JV, you can identify forward-looking statements by terms such as 鈥渕ay,鈥 鈥渨ill,鈥 鈥渟hould,鈥 鈥渆xpects,鈥 鈥減lans,鈥 鈥渁nticipates,鈥 鈥渃ould,鈥 鈥渋ntends,鈥 鈥渢argets,鈥 鈥減rojects,鈥 鈥渃ontemplates,鈥 鈥渂elieves,鈥 鈥渆stimates,鈥 鈥渇orecasts,鈥 鈥減redicts,鈥 鈥減otential鈥 or 鈥渃ontinue鈥 or the negative of these terms or other similar expressions, although not all forward-looking statements use these words or expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part II, Item 1A, 鈥淩isk Factors鈥 in Rivian鈥檚 Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and its other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
About Volkswagen Group:
The Volkswagen Group is one of the world's leading car makers, headquartered in
With its portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalization and sustainability. In 2023, the total number of vehicles delivered to customers by the Group globally was 9.2 million (2022: 8.3 million). Group sales revenue in 2023 totaled
About Rivian:
Rivian (NASDAQ: RIVN) is an American automotive manufacturer that develops and builds category-defining electric vehicles and accessories. The company creates innovative and technologically advanced products that are designed to excel at work and play with the goal of accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are built in
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Media Contacts
Rivian:
Harry Porter 鈥 media@rivian.com
Marina Hoffmann - media@rivian.com
VW Group:
Pietro Zollino - pietro.zollino@volkswagen.de
Jonas Kulawik - jonas.alexander.kulawik@volkswagen.de
Christopher Hauss - christopher.hauss@volkswagen.de
Source: Rivian Automotive
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