Rivian and Volkswagen are eyeing a joint venture to tackle the growing global electric vehicle market.
The companies recently paired for an investment opportunity as Volkswagen pledged to invest up to $5 billion in the EV maker in late June.
On June 25, Rivian and Volkswagen announced they would partner in a deal that would see the EV maker receive $1 billion from the German automaker. Volkswagen pledged to invest up to $5 billion.
Due to the investment, Rivian gained more financial stability and bolstered its situation as it still navigates toward profitability.
Meanwhile, Volkswagen, which has jumped into EV production but has struggled to gain its footing on a global scale, saw an advantage as it would have access to an electric vehicle company with experience and technology.
CEO Oliver Blume said:
“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost.”
The benefits that both companies felt from the investment were notable. Now, it seems the two will take it a step further.
Reuters is reporting the companies may form a joint venture, as the German Competition Authority on Monday said that Rivian and Volkswagen were in discussions to develop EVs conjunctively.
The German Competition Authority, known as the Bundeskartellamt, issued a statement as Andreas Mundt, head of the group, said there were “no serious competition problems to be feared” as the two companies mull a potential partnership.
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