Gia Motors News According to Reuters, on June 26, local time, Volkswagen’s share price fell 2% due to investors ‘concerns about the cost and uncertainty of the company’s joint venture with American electric vehicle manufacturer Rivian.
However, Rivian investors were full of expectations for Volkswagen’s tie-up with Rivian and pushed up the company’s share price, which has not yet turned profitable, 37%.
As of June 26 in noon trading in New York, Rivian’s share price rose 24.
4%, and its market value surged by nearly US$3 billion.
Volkswagen ID.4X. Photo source: Volkswagen, on June 25, German automaker Volkswagen Group announced that it would invest up to US$5 billion in Rivian as part of a joint venture between the two parties to jointly establish a shared electric vehicle platform and software.
This huge investment will not only strengthen Rivian’s cash reserves, but is also expected to help Volkswagen Group improve its market competitiveness.
This cooperation marks that Volkswagen is no longer fighting alone as in the past and is beginning to introduce expertise in key electrification areas such as batteries, electric vehicle platforms and software through partnerships.
, Volkswagen Group’s huge investment in Rivian highlights the difficulties traditional carmakers face in building battery-powered vehicles and advanced software, even as electric vehicle startups are also struggling to cope with slowing demand caused by high interest rates and reduced cash.
, As Volkswagen’s core software R & D department, Cariad has experienced many delays and losses in recent years, and its software delivery capabilities and market competitiveness have always attracted attention and doubts from the outside world.
The cooperation with Rivian has deepened doubts about Cariad.
At the same time, there are questions about whether the two companies can coordinate culture and strategy.
, Volkswagen said Cariad itself will continue to develop projects including autonomous driving software.
Cariad CEO Peter Bosch recently said on LinkedIn that the joint venture between Volkswagen and Rivian will speed up Volkswagen’s software development efforts and reduce R & D costs.
This cooperation between Volkswagen and Rivian is similar to its cooperation with China’s Xiaopeng Motors in July last year, but it is also unique.
The cooperation with Xiaopeng Automobile mainly focuses on software and electric vehicle platforms in the Chinese market, and the software developed in cooperation is only intended to be used in China.
Although this cooperation with Rivian also focuses on the development of shared electric vehicle platforms and software, the software technology developed in cooperation can be used globally, but the two sides will not develop joint models.
However, Volkswagen said that specific details of the cooperation with Rivian have not yet been determined.
Compared with other electric vehicle startups, Rivian has a more stable foundation, but the company still faces losses of nearly US$40,000 (approximately RMB 290,000) per vehicle it delivers.
To cut costs, Rivian has been renegotiating supplier contracts and producing some parts in-house.
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