Rivian (RIVN) and Volkswagen acquired the inexperienced mild from German authorities to type a brand new three way partnership. With “no collection competitors issues” to fret about, the German Federal Cartel Workplace accredited the Rivian/VW partnership on Monday.
Rivian and Volkswagen achieve German approval
It’s been over a month since Rivian and VW introduced the landmark alliance. The brand new partnership will use Rivian’s software program experience to develop an structure for next-gen EVs.
Volkswagen will make investments as much as $5 billion, $3 billion of which can go to Rivian and $2 billion within the three way partnership. Nevertheless, these investments are based mostly on assembly “sure milestones.”
The partnership took a giant step ahead on Monday after gaining approval from German competitors authorities.
The Bundeskartellamt introduced it has “cleared underneath merger management the formation of a three way partnership between Volkswagen and US electrical automotive producer Rivian.” The workplace additionally accredited VW’s funding in Rivian.
Andreas Mundt, president of the Bundeskartellamt, defined that the Rivian and Volkswagen JV is “not anticipated to considerably impede efficient competitors.”
In an announcement launched Monday, the company added, “There’ll proceed to be a adequate vary of providers out there to automotive producers to construct E/E architectures.”
Electrek’s Take
The brand new Rivian and Volkswagen JV is predicted to be finalized by the tip of the 12 months. Gaining approval from the German antitrust authority suggests the partnership remains to be progressing.
The information comes as Rivian appears to be like to scale output after a deliberate shutdown at its Regular, Il plant prompted deliveries to stay flat (13,790) within the second quarter. Rivian expects output to ramp up within the second half of 2024.
Gross sales of Volkswagen’s sole EV within the US, alternatively, the ID.4, fell 15%. VW has struggled to achieve traction because the market shifts to EVs as software program points have derailed progress.
Software program struggles have delayed key EVs, just like the Porsche Macan. New experiences counsel VW is delaying extra EVs, together with the ID.4 successor, resulting from ongoing software program hurdles.
VW’s next-gen SSP platform, which is predicted to make use of software program from the Rivian tie-up, just isn’t anticipated till 2029. That’s one other 15 months from the preliminary plans.
Rivian’s CEO, RJ Scaringe, mentioned the VW JV is totally different from its different partnerships with Ford and Mercedes as a result of it’s targeted “exactly on the factor that has all the time been the problem.”
Volkswagen hopes Rivian may also help repair its software program woes. What do you assume? Will the Rivian tie-up assist VW clear its software program hurdles? Tell us your ideas beneath.
