Rivian-Volkswagen joint venture up deal to $5.8 billion, VW cars expected as early as 2027
Courtesy: Enterprise Wire
Rivian Car and Volkswagen Neighborhood net released details of their previously announced joint endeavor forward of the operations launching Wednesday.
The companies in a joint press unlock Tuesday mentioned the size of the deal is now as a lot as $5.8 billion — an lengthen from an initial $5 billion — with the first VW items to make employ of Rivian’s tool and electrical architecture arriving as early as 2027.
The title of the joint endeavor, which used to be anticipated to shut for the duration of the fourth quarter, is “Rivian and VW Neighborhood Abilities, LLC.”
The deal used to be in the beginning announced in June, and got here as Rivian attempted to take extra capital as it launches its redesigned items and prepares for production of smooth “R2” autos in early 2026.
Rivian CEO RJ Scaringe previously mentioned the capital from VW is anticipated to raise the company thru the production ramp-up of its smaller R2 SUVs at its plant in Long-established, Illinois, beginning in 2026, as effectively as production of a midsize EV platform at a plant in Georgia, where Rivian paused building earlier this year.
VW has already made an initial investment of $1 billion in the safe of a convertible reward, the companies mentioned. On the closing of the joint endeavor, VW will invest about $1.3 billion “as consideration for background IP licenses and a 50% equity stake in the joint endeavor.”
The final investment of as a lot as $3.5 billion is anticipated to reach by 2027 “in the safe of equity, convertible notes, and debt at future dates and in step with clearly outlined milestones,” in step with the companies.
Rivian did no longer straight retort about why there used to be an lengthen in the size of the deal to as a lot as $5.8 billion.
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