Written by Cláudio Afonso | LinkedIn | X
Volkswagen Group has granted approval on Monday from Germany’s Federal Office for the creation of a joint venture with U.S. electric vehicle (EV) maker Rivian.
Andreas Mundt, head of the Office which oversees innovation competition in development partnerships, stated the approval was granted after clarifying that “there any significant competition issues”
“There is no cause for concern with this project, nor are there any significant competition issues to be feared,” he stated.
Earlier this month, Volkswagen Group said it was set to invest up to $5 billion in the US-based electric vehicle maker Rivian to leverage its technology and form a joint venture.
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The partnership “brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and scale”, Rivian‘s CEO RJ Scaringe wrote on X.
In a statement, the German group said that, in case the joint venture would be established successfully, Volkswagen “intends to make further investments in shares of Rivian Automotive, Inc., or in the joint venture in the total amount of 4 billion USD”.
“The additional investment in shares of Rivian Automotive, Inc., would be made in two tranches of 1 billion USD each in 2025 and 2026 and would be contingent on Rivian Automotive, Inc., and the joint venture achieving certain milestones. With respect to the joint venture Volkswagen would provide a payment in the amount of 1 billion USD upon foundation of the joint venture in 2024 and grant a loan in the amount of 1 billion USD in 2026,” VW added.
Written by Cláudio Afonso | LinkedIn | X
