Volkswagen investing $5M in Illinois-based electric car company Rivian to design vehicle software

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Rivian and Volkswagen Group are forming a joint venture to create vehicle software, the two companies announced Tuesday.

VW will invest a total of $5 billion into struggling electric vehicle maker Rivian as part of the arrangement, including a $1 billion immediate investment.The two automakers did not provide a name for the new joint venture company or name its leadership team. Rivian CEO RJ Scaringe said during a conference call that it would have two co-leaders, each reporting to one of the automakers.

"This is important for us financially," he said, "and one of the elements here is that it's also implicit Rivian's successes is important for Volkswagen Group's success." VW already has its own vehicle software subsidiary, Cariad, and that company will continue with its work, VW chief executive Oliver Blume said on a conference call. The new joint venture's work will be in addition to Cariad's and not in place of it, he said

 

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