The finances of the crisis-stricken Volkswagen, which is threatening factory closures, are no worse than finding an additional DKK 5.8 billion for Rivian.
Crisis-stricken Volkswagen is now investing a further DKK 5.8 billion in the American electric car manufacturer Rivian.
The purpose of the investment is to launch a new VW model, which uses Rivian's technology, sometime in 2027 at the latest . The Germans have thus spent DKK 40.8 billion on Rivian.
The money has been found by Volkswagen, even though the brand is facing significant financial difficulties at home in Germany. A number of savings have already been implemented from the head office in Wolfsburg, but the management is also preparing for factory closures and layoffs.
Despite these challenges, however, Volkswagen chooses to increase its investments in the collaboration with Rivian.
The two companies have additional investments for a total of 5.8 billion Danish kroner in a joint company. A so-called joint venture.
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According to a joint announcement from Volkswagen and Rivian, the investment is an attempt to integrate Rivian's technology and software into Volkswagen's future models.
The announcement has already sparked speculation in the German press that Volkswagen is only increasing its involvement in Rivian to get rid of the Germans' own failed software project called Cariad. Something that has already cost significant losses.
According to the Volkswagen Group's managing director, Oliver Blume, the ambition is for Rivian's technology to be used in several different models and brands within the Volkswagen Group.
The technology must be flexible enough that it can also be used in sports cars, as Blume has stated. Incidentally, Blume is also the person in charge at Porsche.
In a comment, Rivian's managing director, RJ Scaringe, expressed satisfaction that Rivian's technological solutions are now finding their way to other car brands and models.
Volkswagen today owns the American car brand Scout, which has just presented a number of new models. Back in March 2023, the revived car brand said that it will spend 2 billion dollars on a brand new car factory in the state of South Carolina. Here, 4,000 employees must have their daily routine.
Back at Volkswagen in Wolfsburg, the brand has just requested to withdraw from another crisis-stricken project. Read more about it here .
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