(Bloomberg) — Volkswagen AG and Rivian Automotive Inc. named leaders for their multibillion-dollar joint venture and showcased a prototype electric vehicle, signaling their commitment even as global EV demand softens and the incoming Trump administration threatens to curtail supportive policies.
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The two companies agreed in June to develop battery-powered vehicles together, with VW expected to invest as much as $5 billion into Rivian. On Tuesday, VW boosted its investment plans by another $800 million. That financial lifeline may ease concerns about Rivian’s cash burn and give the German carmaker access to its US partner’s software technology — an area where VW has stumbled.
Shares of Rivian rose 3.7% in postmarket trading to $10.97 as of 4:29 p.m. in New York. The stock closed regular trading Tuesday down about 55% this year.
The JV, known as Rivian and VW Group Technology LLC, will be led by co-chief executive officers Wassym Bensaid, Rivian’s chief software officer, and Carsten Helbing, VW’s chief technology officer, the companies said in a joint statement. The co-CEOs will lead a dedicated group of about 1,000 engineers from both companies.
“This is an acceleration of our plans for the future,” Bensaid said in an interview at Rivian’s Palo Alto office.
Volkswagen aims to launch vehicles in 2027 with technology fine tuned by the JV. The companies also aim to develop an all-new software-defined vehicle with more advanced technologies, which they ultimately aim to license to other automakers.
The prototype shown to a small group of reporters in Palo Alto integrates Rivian’s software-based vehicle architecture into an unmarked VW test vehicle, which Bensaid said was outfitted by the JV’s engineers in a 12-week period.
Helbing, who will also serve as chief operations officer of the venture, said the technology will be easily translatable to commercially available Volkswagen models at a similar pace. He added that kind of accelerated decision-making and development timeframe is a side benefit from the collaboration with a smaller and more nimble partner like Rivian.
“For us, the impressive part was the speed and pace of implementation,” Helbing said in the interview. “The intention is to keep the pace.”
Bensaid said Rivian sees the venture as a way to boost cost savings by leveraging the scale economies enjoyed by its larger partner, and thereby improve its own vehicle margins.
