Photo provided by Volkswagen Group CEO Oliver Blume and Rivian founder and CEO RJ Scaringe as the two companies announced plans for a joint venture on June 25, 2024.
Courtesy: Business Wire
Rivian Cars and Volkswagen Group have released details of their previously announced joint venture before the operation launches on Wednesday.
The company is in a joint press release The deal size has now reached $5.8 billion, up from the initial $5 billion, and the first Volkswagen models using Rivian software and electrical architecture will be available as early as 2027, it said on Tuesday.
The joint venture, called “Rivian and VW Group Technology, LLC,” is expected to close in the fourth quarter.
The deal is Originally announced in Junemeanwhile, Rivian tries to raise more money, launch redesigned models and prepare to build new models “R2” vehicle Early 2026.
Rivian CEO RJ Scaringe previously said Volkswagen’s funding was expected to help the company complete production ramp up Starting in 2026, Rivian will build the small R2 SUV at a plant in Normal, Illinois, and a midsize electric vehicle platform at a plant in Georgia. Construction suspended earlier this year.
Volkswagen has made an initial investment of $1 billion in the form of convertible notes, the companies said. At the end of the joint venture, Volkswagen will invest approximately $1.3 billion “as consideration for background intellectual property licenses and a 50% stake in the joint venture.”
The companies said they expect remaining investment to reach $3.5 billion by 2027 “in the form of equity, convertible notes and future debt and based on clearly defined milestones.”
Rivian did not immediately respond to a request for comment on why it increased the deal size to $5.8 billion.
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