Volkswagen is already lagging behind in the transition to electric cars and losing to Chinese new forces in key Asian markets. Electric car startup Rivian is an important step in Volkswagen's self-rescue plan - the two companies will cooperate to establish a joint venture to support Volkswagen's first new electric vehicle model in collaboration with Rivian, which is expected to be launched as early as 2027.
If you can't beat them, join them! Volkswagen, deeply stuck in the mud, is firmly holding onto the electric car startup company Rivian.
On November 12, The Wall Street Journal reported that German automotive giant Volkswagen and electric car startup Rivian will cooperate to establish a joint venture focusing on the development of Rivian's electrical architecture and software technology stack, in order to support the launch of Rivian's R2 model in the first half of 2026. It is also expected to support the earliest launch of a new electric vehicle model, in collaboration between Volkswagen Group and Rivian, in 2027.
In addition, Volkswagen plans to invest up to $5.8 billion in Rivian and the joint venture by 2027. Previously, Volkswagen had already invested $1 billion in Rivian in the form of convertible bonds.
The two companies announced that the team will establish a base in Palo Alto, California, with three additional bases in North America and Europe, still under development. Wassym Bensaid from Rivian and Carsten Helbing from Volkswagen will jointly serve as co-CEOs of the joint venture.
Deeply stuck in the mud, Volkswagen.
Amid a tough economic environment and intensifying competition in electric cars, German automotive giant Volkswagen is facing unprecedented challenges - In October, Volkswagen's labor management committee issued a warning that Volkswagen plans to close at least three German factories, downsize other plants, and lay off tens of thousands of employees to cut costs.
Analysis suggests that German automotive manufacturers, including Volkswagen and Mercedes, have fallen behind Tesla and Chinese companies in the transition to electric vehicles, losing out to many innovative Chinese startups in key Asian markets.
Therefore, Volkswagen needs to accelerate investment in electric vehicles—Rivian is an important step in Volkswagen's self-rescue plan.
Volkswagen CEO Oliver Blume said:
"Collaborating with Rivian is a logical choice under our software global strategy."
