Volkswagen (VW) has announced it will be investing up to $5 billion in Rivian, a US-based electric vehicle (EV) maker and Tesla competitor. This strategic partnership will allow VW and Rivian to share cutting-edge technology, boosting their presence in the EV market. Rivian's shares surged nearly 50% following the announcement. VW will initially invest $1 billion, with an additional $4 billion by 2026. This comes as competition intensifies and Western countries plan tariffs on Chinese EV imports. Founded in 2009, Rivian is navigating financial challenges, reporting a net loss of over $1.4 billion in early 2024. The partnership offers VW access to Rivian's advanced software, aiding VW’s transition to electric vehicles. Stay tuned for more updates in the evolving automotive industry! And read more about this investment below – https://lnkd.in/eFUsBSgH #MetricGeo #Entegris #CHIPSAct #Innovation #ColoradoSprings #JobCreation
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German car making giant Volkswagen (VW) says it will invest up to $5bn (£3.94bn) in Tesla rival Rivian. The deal creates a joint venture that will allow VW and the US-based electric vehicle (EV) maker to share technology. Rivian shares jumped by almost 50% after the announcement. The tie-up comes as competition intensifies between EV makers and Western countries move to impose tariffs on Chinese imports. Under the agreement, VW said it will initially invest $1bn in the electric truck and SUV maker, with another $4bn to be put into the company by 2026. Founded in 2009, Rivian has not yet posted a quarterly profit. In the first three months of 2024 the company saw a net loss of more than $1.4bn. VW, like other motor industry giants, has come under pressure from rivals like Tesla and China's BYD as it tries to make the shift from fossil fuel-powered vehicles. Meanwhile, some EV start-ups have struggled to make headway in the highly competitive market and as higher interest rates hit demand for big ticket purchases. The partnership will give VW immediate access to Rivian's software allowing the German car maker to use it in its cars. Motor industry giants like VW have also been facing growing competition from Chinese EV makers, which have been expanding globally. Read more ➡️ https://buff.ly/3L1xNpv The Scottish Chambers of Commerce Network is here to support your business - reach out to share your views, concerns and opportunities. #SCCnews #businesssupport #businessnetwork #businessvoice #businessleader Sign up for the Scottish Chambers of Commerce enewsletter at https://buff.ly/3CpsQnu
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Now this is interesting. As per BusinessWire, Rivian and Volkswagen Group intend to enter a joint venture to create next generation software-defined vehicle (SDV) platforms to be used in both companies’ future electric vehicles Volkswagen to invest an initial $1 billion in Rivian, with up to $4 billion in planned additional investment for a total expected deal size of $5 billion Joint venture is expected to build on Rivian’s industry-leading software and electrical architecture to create best-in-class software-defined vehicle technology platform Exciting. https://lnkd.in/dqDRFCRR
German car maker VW to invest up to $5bn in Tesla rival Rivian
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Germany car giant VW to invest $5bn in Tesla rival Rivian!! Are we beginning to see a shift to traditional car companies starting to invest heavily in their EV offering. Could we see a more open and competitive EV market moving away from the current big players of Tesla and BYD who currently hold almost 40% of the market between them. Will this also start to decrease the average cost of EVs and improve driving range per charge in the long run? https://lnkd.in/dVCQyQZa
German car maker VW to invest up to $5bn in Tesla rival Rivian
bbc.com
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In this week's #automotive top stories: Volkswagen commits US$5 billion to Rivian to collaborate on EV technology, while India plans to invest US$750 million in Mexico's automotive sector. This and more in your weekly roundup! #MexicoBusinessNews #MexicoBusiness #WeeklyRoundups
Volkswagen Extends Lifeline to Rivian: Automotive Week
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Volkswagen Flips the Script: $5 Billion Bet on Rivian to Spark EV Smackdown with Tesla and China: German auto giant Volkswagen (VW) throws its weight behind American challenger Rivian, investing up to $5 billion to create a joint venture focused on electric vehicle (EV) technology and software development. This strategic partnership signifies a major move in the intensifying competition within the EV market, particularly against Tesla and China's burgeoning electric car industry. The Deal Sweetens the Pot for Both Parties: VW gains immediate access to Rivian's cutting-edge EV software: This crucial technology will be integrated into VW's vehicles, accelerating their development of competitive EVs and narrowing the gap with Tesla. Rivian receives a significant financial boost: The $5 billion investment bolsters Rivian's resources, allowing them to further develop their technology and potentially reach profitability faster. Additionally, the joint venture allows Rivian to leverage VW's vast production expertise and global reach. A Global EV Landscape Heating Up: Western countries counter China's dominance: The VW-Rivian alliance reflects a broader trend. The European Union and the United States have both recently imposed tariffs on Chinese EV imports, citing unfair subsidies. This move signals a growing concern about China's aggressive expansion in the EV market. Traditional carmakers face pressure to adapt: VW, like many other established automakers, is struggling to transition from gasoline-powered vehicles. The partnership with Rivian demonstrates their commitment to developing competitive EVs and staying relevant in the rapidly changing automotive landscape. Challenges Remain, Even for Leaders: Rivian, despite its innovative technology, has yet to turn a profit. The success of the partnership hinges on their ability to translate their advancements into commercially viable products. Tesla, the current EV leader, faces its own hurdles. Their recent Cybertruck recall highlights potential production or quality control issues that could impact their market share. The VW-Rivian partnership marks a significant development in the EV race. It's a strategic alliance with the potential to disrupt the market and challenge Tesla's dominance. However, both companies, along with other players, will need to navigate the competitive landscape, address internal challenges, and continue innovating to solidify their positions within the ever-evolving EV industry.
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Rivian Surges Nearly 50% on News of VW Investment The shares of EV maker Rivian surged nearly 50% after the news of a joint venture with Volkswagen, which will invest up to $5 bln. in the U.S. company. The two companies will also share technologies and VW will use Rivian’s software in its cars. Under the agreement, VW will initially invest $1bn in the electric truck and SUV maker, with another $4bn to be put into the company by 2026. Rivian was founded in 2009 and has put to market several models of quite expensive electric trucks and SUVs, but has been struggling financially and has not yet posted a quarterly profit. Trade CFDs on Rivian: http://bit.ly/3ZbmaBE 59% of retail CFD accounts lose money.
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VW Could Close Plants In Germany, Warns of 'Serious Situation': An anonymous reader quotes a report from Axios: The German company says it may close plants in its home country amid what CEO Oliver Blume reportedly called "a very demanding and serious situation" for the European automotive industry. That would mark the first-ever German plant closures in the company's nearly nine-decade history. VW is facing a pair of competition-related challenges -- one outside its control, and the other of its own making. Chinese automakers are wresting market share away from VW in China, where it once held the highest share of any automaker. The company's China sales have fallen from 4 million in 2017 to an estimated 2.5 million in 2024, according to Dunne Insights analyst Michael Dunne. And its Chinese competitors are bringing cheap electric vehicles to VW's other critical market: Europe. Another part of the problem is that VW is a bloated company compared with its competitors, meaning it has less margin for error. The company had some 684,000 employees in 2023. That's about 309,000 more than the ever-efficient Toyota, which sold about 2 million more vehicles than VW worldwide last year. The VW brand's profit margin fell from 3.8% in 2023 to 2.3% in the first half of 2024, moving in the wrong direction from the company's long-term target of 6.5%, according to Evercore ISI analyst Chris McNally. Hence the "drastic attempt to cut costs" as the company's bottom line suffers, McNally writes. But VW isn't just facing operational issues and increased competition in key markets -- it's also falling behind on technology. The company recently agreed to invest in Rivian to get help from the American startup on EV development despite having 40 times more employees than its new partner. And VW's long-awaited ID. Buzz -- its EV revival of its famed microbus -- recently disappointed enthusiasts with underwhelming battery range of 234 miles and a starting price of about $60,000. Read more of this story at Slashdot.
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VW Could Close Plants In Germany, Warns of 'Serious Situation': An anonymous reader quotes a report from Axios: The German company says it may close plants in its home country amid what CEO Oliver Blume reportedly called "a very demanding and serious situation" for the European automotive industry. That would mark the first-ever German plant closures in the company's nearly nine-decade history. VW is facing a pair of competition-related challenges -- one outside its control, and the other of its own making. Chinese automakers are wresting market share away from VW in China, where it once held the highest share of any automaker. The company's China sales have fallen from 4 million in 2017 to an estimated 2.5 million in 2024, according to Dunne Insights analyst Michael Dunne. And its Chinese competitors are bringing cheap electric vehicles to VW's other critical market: Europe. Another part of the problem is that VW is a bloated company compared with its competitors, meaning it has less margin for error. The company had some 684,000 employees in 2023. That's about 309,000 more than the ever-efficient Toyota, which sold about 2 million more vehicles than VW worldwide last year. The VW brand's profit margin fell from 3.8% in 2023 to 2.3% in the first half of 2024, moving in the wrong direction from the company's long-term target of 6.5%, according to Evercore ISI analyst Chris McNally. Hence the "drastic attempt to cut costs" as the company's bottom line suffers, McNally writes. But VW isn't just facing operational issues and increased competition in key markets -- it's also falling behind on technology. The company recently agreed to invest in Rivian to get help from the American startup on EV development despite having 40 times more employees than its new partner. And VW's long-awaited ID. Buzz -- its EV revival of its famed microbus -- recently disappointed enthusiasts with underwhelming battery range of 234 miles and a starting price of about $60,000. Read more of this story at Slashdot.
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VW Could Close Plants In Germany, Warns of 'Serious Situation': An anonymous reader quotes a report from Axios: The German company says it may close plants in its home country amid what CEO Oliver Blume reportedly called "a very demanding and serious situation" for the European automotive industry. That would mark the first-ever German plant closures in the company's nearly nine-decade history. VW is facing a pair of competition-related challenges -- one outside its control, and the other of its own making. Chinese automakers are wresting market share away from VW in China, where it once held the highest share of any automaker. The company's China sales have fallen from 4 million in 2017 to an estimated 2.5 million in 2024, according to Dunne Insights analyst Michael Dunne. And its Chinese competitors are bringing cheap electric vehicles to VW's other critical market: Europe. Another part of the problem is that VW is a bloated company compared with its competitors, meaning it has less margin for error. The company had some 684,000 employees in 2023. That's about 309,000 more than the ever-efficient Toyota, which sold about 2 million more vehicles than VW worldwide last year. The VW brand's profit margin fell from 3.8% in 2023 to 2.3% in the first half of 2024, moving in the wrong direction from the company's long-term target of 6.5%, according to Evercore ISI analyst Chris McNally. Hence the "drastic attempt to cut costs" as the company's bottom line suffers, McNally writes. But VW isn't just facing operational issues and increased competition in key markets -- it's also falling behind on technology. The company recently agreed to invest in Rivian to get help from the American startup on EV development despite having 40 times more employees than its new partner. And VW's long-awaited ID. Buzz -- its EV revival of its famed microbus -- recently disappointed enthusiasts with underwhelming battery range of 234 miles and a starting price of about $60,000. Read more of this story at Slashdot.
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