VW launches $5.8bn partnership with Tesla rival Rivian | EUROtoday

Volkswagen Group (VW) and Tesla rival Rivian have launched a three way partnership, with the German automobile big growing its funding within the partnership.

The two firms say the the deal is now price $5.8bn (£4.55bn) – up from an preliminary pledge of $5bn by VW.

Shares within the US electrical car (EV) maker jumped greater than 9% in after-hours buying and selling following the announcement.

The tie-up will see the corporations sharing vital know-how at a time of slowing international demand for electrical automobiles and elevated competitors from Chinese rivals.

The three way partnership gives loss-making Rivian with an important supply of funding because it prepares for the launch subsequent yr of its R2 mannequin – a sports activities utility car (SUV) that’s smaller and extra inexpensive than its present choices.

It additionally means VW will have the ability to use Rivian’s know-how in its personal vary of autos.

The first VW fashions geared up with Rivian know-how are anticipated to be obtainable to clients as early as 2027.

“By combining their complementary expertise, the two companies plan to reduce development costs and scale new technologies more quickly,” the 2 firms stated in an announcement.

Under the plan, builders and software program engineers from each corporations will initially work aspect by aspect in California, whereas three different services in North America and Europe will likely be arrange.