VW and Rivian officially kick off $5.8 billion joint venture, announce leadership

Volkswagen and Rivian person crossed each their T’s and dotted each their I’s successful their caller $5.8 cardinal associated venture, which officially kicks disconnected its enactment connected November 13th, the companies announced today.

Last June, VW said it would put $5 cardinal successful Rivian arsenic portion of a caller associated task that’s focused connected processing a caller electrical architecture and conveyance bundle for aboriginal models, including subcompact cars, with the archetypal planned for 2027. The concern size has present accrued to $5.8 billion.

The caller associated venture, dryly named “Rivian and VW Group Technology, LLC,” volition beryllium led by Rivian bundle main Wassym Bensaid and VW Group main exertion technologist Carsten Helbing. Teams volition beryllium based successful Palo Alto, California, initially, and 3 different sites are successful improvement successful North America and Europe. Developers and engineers from some companies volition capable retired the ranks of the caller venture.

At the time, the caller task was seen arsenic a large triumph for Rivian, which has mislaid implicit $1 cardinal each 4th for the past twelvemonth and is inactive struggling to find its fiscal footing. The institution precocious said it expected to suffer up to $2.88 cardinal successful adjusted net for the year, up from the erstwhile guidance of $2.7 cardinal successful losses. And it has gone through several rounds of layoffs implicit the past 2 years.

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