staff@slashgear.com (Jowi Morales)
2024-06-25 18:05:38
www.slashgear.com
Alongside the joint venture announcement, VW also said that it plans to invest an initial $1 billion to Rivian, pending regulatory approval. Afterward, it will invest another $1 billion in 2025 and 2026, resulting in a $3-billion direct investment into Rivian’s common stock.
The press release said that the remaining $2 billion will be invested in relation to the joint venture, with the release of funds divided between the project and as a loan that Rivian can tap into in 2026. Volkswagen said that it spent several months validating Rivian’s expertise and ensuring compatibility with Volkswagen’s models, so everything must have fallen in place, as the companies co-released the statement.
Many automobile enthusiasts will be excited about this news, as Volkswagen has previously announced its intention to revive the iconic International Harvester Scout as an electric SUV. The company plans to set up an independent U.S.-based company to build it, and a joint venture with Rivian might just be the start of this revival. However, nothing yet is set in stone — the press release says that everything is still subject to the completion of definitive agreements and regulatory approvals.
