Volkswagen is investing $1 billion in Rivian as part of a new joint venture that will give the German auto giant access to the buzzy California electric vehicle company's software and electric vehicle platform. An additional $4 billion could be invested in Rivian, for a total sum of $5 billion.
The new company was announced in x.com/RJScaringe/status/1805694762286301406″>a post by Rivian CEO RJ Scaringewho noted that the investment will help the company bring its next-generation R2 electric vehicle to market starting in 2026. The R2 is expected to be a more affordable $45,000 model than its current luxury-priced electric vehicles, the R1T and the R1S.
Scaringe said the partnership will bring Rivian's new zonal architecture, available now through its refreshed second-generation R1 vehicles, as well as its software, to a “broader market.” Rivian recently became one of the few companies besides Tesla to use a zonal architecture for its vehicles that relies on fewer electrical control units than usual.
VW isn't the first legacy automaker to partner with Rivian. The company planned to co-develop an electric SUV with Ford, but those plans were canceled amid the Covid pandemic. The plan was to use Rivian's battery and electric motor in a Ford or Lincoln brand SUV. Ford invested $500 million in Rivian as part of the plan, along with $700 million from amazon.
