SAN JOSE, California, Nov 13 (Bernama-dpa) -- German auto giant Volkswagen has officially launched a joint venture with US electric vehicle manufacturer Rivian, committing to a €5.8 billion (US$6.2 billion) investment, €800 million more than previously planned, to accelerate its electric vehicle transition, reported German news agency dpa.
The partnership is expected to produce its first models based on Rivian's advanced electric car technology from 2027, VW Group CEO Oliver Blume said at the launch of the joint venture in Palo Alto, northern California, on Tuesday.
Volkswagen, Europe's largest automaker, aims to leverage Rivian's innovative electric and software architecture to streamline its electric vehicle line-up.
The collaboration will focus on a range of technologies, including software systems, control computers and network architecture.
By adopting Rivian's platform, Volkswagen hopes to tackle issues with its in-house software development, which has delayed model rollouts in recent years.
The two companies announced the cooperation at the end of June, and in July, the German Cartel Office approved it.
The new joint venture is set to commence operations on Wednesday. It will be based in Palo Alto with further locations in Europe and North America planned.
Most of the team will be sourced from Rivian, with a few members joining from VW, said Rivian founder and CEO RJ Scaringe. The venture will be jointly led by one manager from each company.
Of the €5.8 billion total investment, €3.5 billion will go toward a direct stake in Rivian, while €2.3 billion will fund the joint venture, with €1 billion set aside as a loan.
--BERNAMA-dpa
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