Volkswagen invests 5 billion in Rivian

03 July 2024 BY Jean-Sébastien Poudrier

A few days ago, I mentioned that times are tough for emerging automakers and that a good way for them to improve their situation is to partner with a major manufacturer. Fortunately for Rivian, the Volkswagen Group has decided to invest a hefty sum of 5 billion dollars, which should ensure long-term viability for the American company.


Rivian was founded in 2009, making it a relatively young manufacturer in the history of the automotive industry. However, the brand has built a solid reputation and offers quality products. In fact, we are starting to see some of its vehicles on our roads regularly.


What does Volkswagen gain from this?


Of course, Volkswagen is a business, and it needs to generate profits. So, the 5 billion investment is not just a gift. The question is legitimate, especially with the massive arrival of electric vehicles in the group in recent years.


The German manufacturer aims to develop better software for its electric vehicles with Rivian, which has an excellent foundation in this field. Volkswagen might even use the architecture of some Rivian vehicles. This partnership should allow both manufacturers to get ahead of their main rivals, like Tesla.


For its part, Rivian benefits from this investment to ensure long-term viability, which is excellent news for the brand's fans. Moreover, the brand's stock has soared by almost 50% since the announcement.


The goal of Volkswagen and Rivian is to jointly produce and sell vehicles before 2030, which is entirely possible given the progress the two brands have made in recent years.


Let's not forget that Rivian is about to launch the R2, a smaller, more affordable vehicle. Volkswagen's contribution should allow the American manufacturer to achieve great success with this model. In short, everyone benefits from this partnership, and this is also true for buyers who will have access to new, more competitive products than ever.


Jean-Sébastien Poudrier