A provided representation of Oliver Blume, CEO of Volkswagen Group and RJ Scaringe, laminitis and CEO of Rivian, arsenic the companies denote associated task plans connected June 25, 2024.
Courtesy: Business Wire
Rivian Automotive and Volkswagen Group person released details of their antecedently announced joint venture up of the operations launching Wednesday.
The companies successful a associated property release Tuesday said the size of the woody is present up to $5.8 cardinal — an summation from an archetypal $5 cardinal — with the archetypal VW models to usage Rivian's bundle and electrical architecture arriving arsenic aboriginal arsenic 2027.
The sanction of the associated venture, which was expected to adjacent during the 4th quarter, is "Rivian and VW Group Technology, LLC."
The woody was initially announced successful June, and came arsenic Rivian attempted to rise further superior arsenic it launches its redesigned models and prepares for accumulation of caller "R2" vehicles successful aboriginal 2026.
Rivian CEO RJ Scaringe antecedently said the superior from VW is expected to transportation the institution done the accumulation ramp-up of its smaller R2 SUVs astatine its works successful Normal, Illinois, starting successful 2026, arsenic good arsenic accumulation of a midsize EV level astatine a works successful Georgia, wherever Rivian paused construction earlier this year.
VW has already made an archetypal concern of $1 cardinal successful the signifier of a convertible note, the companies said. At the closing of the associated venture, VW volition put astir $1.3 cardinal "as information for inheritance IP licenses and a 50% equity involvement successful the associated venture."
The remaining concern of up to $3.5 cardinal is expected to travel by 2027 "in the signifier of equity, convertible notes, and indebtedness astatine aboriginal dates and based connected intelligibly defined milestones," according to the companies.
Rivian did not instantly respond astir wherefore determination was an summation successful the size of the woody to up to $5.8 billion.
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