[ad_1]
\n<\/p>\n
Volkswagen and EV company Rivian have entered a new partnership, and the total price tag for the collaboration could reach an eye-popping $5 billion. The businesses are launching a joint venture to develop platforms for \u201csoftware-defined vehicles.\u201d According to the <\/a> announcing the deal, the joint venture’s work will focus on Rivian’s zone-based approach to electric vehicles, which significantly reduces the complexity of the wiring and electronics. Both Rivian and Volkswagen are expected to debut vehicles using their combined forces as a result of the partnership; the release notes that each of the brands will continue operating their vehicle businesses separately.<\/p>\n The massive dollar figure for this collaboration is broken up into components. Volkswagen is making a baseline $1 billion investment in Rivian the EV company, followed by two more expected investments of the same amount in 2025 and 2026. The car brand also anticipates putting a total of $2 billion into the joint venture, some at the launch and some as a loan in 2026.<\/p>\n This work will see Volkswagen adopting Rivian’s signature zonal architecture for its own future machines. Today’s announcement follows hot on the heels of the brand <\/a> into many of its car models.<\/p>\n Rivian has seen some financial struggles this year, leading the company to <\/a> for a plant in Georgia and to <\/a> of its salaried staff. A deal of this size with a leading traditional automaker should help the company to stabilize as it works towards its <\/a> of electric vehicles.<\/p>\n<\/div>\n