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VW-Rivian Partnership for Electric Vehicles

Volkswagen and Rivian partner to develop electric vehicles, addressing VW's software challenges and leveraging Rivian's technology.

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German

Germany

TechnologyGermany Artificial IntelligenceInvestmentElectric VehiclesAutomotivePartnership

VolkswagenRivianAudiPorscheAmazon

Oliver BlumeRj Scaringe

What is the financial impact of this partnership on Rivian?: Rivian, despite recent losses, receives a significant capital injection from the partnership. This funding secures capital needed for its production ramp-up, although it continues to struggle with declining demand for electric vehicles in the US market.
What is the main purpose of the Volkswagen-Rivian partnership?: Volkswagen and Rivian have finalized their partnership, with the first vehicles based on Rivian's electric architecture expected in 2027. VW's investment increased to \$5.8 billion, granting access to Rivian's electric and software architecture.
What technologies will be shared between Volkswagen and Rivian?: The joint venture will develop software, control computers, and network architecture for both manufacturers. Rivian's existing electronics architecture will be further developed, with VW's new electric cars gradually adopting Rivian's technology and software.
What challenges is Volkswagen facing that prompted this partnership?: Volkswagen has struggled with in-house software development, leading to delays in model launches. Rivian's architecture uses fewer control units, addressing this issue. The joint venture will be based in Palo Alto, with additional locations planned for Europe and North America.
What vehicle types will be affected by the use of Rivian's technology?: The joint venture aims to leverage Rivian's advanced electric vehicle technology to improve Volkswagen's electric car offerings. This collaboration addresses VW's software development challenges and enables cost reductions through higher production volumes across various vehicle classes.

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