Two major car firms ‘team up’ with £4.5BILLION investment in bid to rival Tesla with new EVs
TWO major car firms have joined up with a £4.5billion investment in a bid to rival Tesla with new EVs.
An industry giant has partnered with an electric vehicle start-up company to help with the progression of future tech.
The Volkswagen Group and American-based Rivian made the move to boost “body systems, the drivetrains, the infotainment” and “all electronics in the vehicle”, according to VW boss Thomas Schäfer.
They also hope to lower production costs and keep up with China’s EV market and competitors such as Tesla.
Porsche and Audi are reportedly set to be the first brands to use their tech.
Volkswagen’s new Scout Motors US brand is although thought to be in the preliminary roll out.
The German manufacturer said the partnership will create “best-in-class software technology for both companies’ future electric vehicles” thanks to “Rivian’s industry-leading software” and “Volkswagen Group’s significant global scale”.
VW has vowed to pour $5.8billion, £4.5billion, into Rivian by 2027 – the same year they expect to roll out their first models.
Speaking about the deal last year, VW Group CEO Oliver Blume said the partnership is “the next logical step”.
“With its implementation, we will strengthen our global competitive and technological position,” he said.
“We have a clear plan to offer our customers the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches, and a competitive cost base driven by synergies.”
During the original announcement in 2024, RJ Scaringe, founder and CEO of Rivian, added: “Today’s finalisation of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles.
“We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future.
“Rivian will continue to stay focused on creating best-in-class products and services that benefit our customers, helping to drive EV adoption.”
Rivian was founded in 2009 but produced its first car in 2017.
So far the company has produced two models for the American consumer market.
The R1S, the company’s first consumer SUV, sold over 23,000 production models in 2023.
The R1T, the second-fastest pickup truck on the mass market with a 0 to 60 mph time right at 3 seconds, sold just under 20,000 iterations last year.
Customers have reported historically high satisfaction numbers with their Rivians.
Rivian scored the highest recorded satisfaction rate with customers, according to Consumer Reports.