VW Invests $5B in Rivian as Trade Tensions Rise
Volkswagen (VW) is investing up to $5 billion in US-based electric vehicle (EV) manufacturer Rivian. The move comes amidst rising trade tensions and plans to increase import levies on Chinese EVs.
VW will initially invest $1 billion in Rivian, with a further $4 billion by 2026. This partnership grants VW access to Rivian's advanced software for integration into its own vehicles. The joint venture aims to strengthen both companies' positions in the EV market.
Rivian, founded in 2009, specializes in electric trucks and SUVs but is yet to achieve quarterly profitability. The partnership announcement coincides with plans by the US and Canada to increase import levies on Chinese EVs, and EU threats to raise tariffs by up to 38%.
Following the partnership announcement, Rivian's shares surged by nearly 50%. Meanwhile, Tesla has announced a recall of over 11,000 Cybertrucks in the US due to issues with windscreen wipers and exterior trim.
VW's investment in Rivian signals a significant step in the EV market, with both companies aiming to leverage each other's strengths. The partnership unfolds against a backdrop of increasing trade tensions and levies on Chinese EVs.
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