Electric vehicle startup Rivian and German automobile giant Volkswagen finalized their joint venture this week, a $5.8 billion deal that could prove transformational for both automakers. They are partnering to develop software for their next-generation EVs through a separate entity helmed by top Rivian and VW officials.
Called “Rivian and VW Group Technology LLC,” the joint venture provides Volkswagen access to Rivian’s technology platform while juicing the startup’s balance sheet as it aims to make the jump to being a profitable company. Scaringe Rivian CEO R.J.
Scaringe previously said the capital investment will help support the launch of a new R2 crossover at its factory in Normal, where the company has more than 8,000 workers, and help make its planned $5 billion factory an hour east of Atlanta a reality. “Certainly this partnership and this deal secures the capital for us to ensure that we can not only take Rivian through the launch of R2 in Normal but secures the launch and growth of our Georgia facility through (becoming) a free-cash-flow positive business,” he reiterated in a statement on Tuesday. Volkswagen Group CEO Oliver Blume said, “The partnership with Rivian is the next logical step in strengthening our global competitive and technological position.
” The joint venture will be led by Wassym Bensaid, Rivian’s chief software officer, and Carsten Helbing, VW Group chief technical engineer. The joint venture’s staff will be comprised of develope.
