The Volkswagen-Group is digging deeper into its pockets than planned for the joint venture with the US electric car manufacturer Rivian. The group wants to invest up to 5.8 billion dollars in the project, which the Wolfsburg-based company expects will result in a breakthrough in software for new electric cars. An investment of $5 billion was originally planned.
According to the company, VW’s investments will also be higher than announced in June because more cars will get the new software than originally planned. VW boss Oliver Blume said on Tuesday evening at the official launch of the joint venture that the partnership with Rivian was the next logical step in the software strategy.
Software also for small cars
Volkswagen will bring the first vehicles with Rivian software onto the market in 2027. Blume left it open which cars they were. It will start with a model from Volkswagen’s new US brand Scout and a Porsche SUV, manager magazine reported in an analysis Allianz, which primarily deals with the consequences for the software subsidiary Cariad.
Around 5,500 men and women currently work there.
Blume said the plan is to use the electronic architecture and software in both companies’ electric cars in all relevant segments, including small cars. The software was originally intended primarily for larger vehicles. Scott Keough, who is responsible for the new corporate brand Scout, said it made sense to move production to the USA and combine US technology.
The Wolfsburg-based company expects significant savings from the software collaboration. Chief Financial Officer Arno Antlitz said the investment volume would be offset by lower costs in the joint venture and future savings in investment planning. This is reflected in the fact that the investment volume for the 2025 to 2029 planning round has been reduced to 165 billion euros.