Accelerating SDV momentum
Volkswagen Group & Rivian
take first step for strategic partnership
June 25, 2024
Disclaimer
The following presentations as well as remarks/comments and explanations in this context contain forward-looking statements on matters including, but not limited to, the business development of the Volkswagen Group, the potential establishment of a joint venture between Volkswagen Group and Rivian, the creation by such joint venture of future electrical/electronic architecture, any future investments in Rivian by Volkswagen Group and the receipt of any regulatory approvals with respect to any of the foregoing. These statements are based on assumptions relating to future events and trends, including but not limited to those relating to the development of the economic, political and legal environment in individual countries, economic regions and markets, and in particular for the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given entail a degree of risk, and actual developments may differ from those forecast. All figures are rounded, so minor discrepancies may arise from addition of these amounts.
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Summary
Volkswagen Group & Rivian have entered into a Convertible Note Agreement as a first step of a comprehensive partnership on E/E1 architecture & vehicle software
Intention for a 50/50 Joint Venture to create E/E architectures &
software for electric vehicles of Volkswagen Group & Rivian2
Volkswagen Group intends to invest up to $5bn in Rivian & the Joint Venture until 2026 based on certain milestones3
Partnership to accelerate deployment of next- generation SDV stack3
1. E/E = Electrical/electronic architecture | 2. Excluding certain legacy and local-for-local architectures | 3. Subject to the negotiation of definitive agreements | 3 |
Global scale meets state-of-the-art technology
Global powerhouse | Clean sheet approach & | |
with leading scale | Complementary | speed of innovation |
Industry-leading | combination uniting | Best-in-class |
'best of both worlds' | ||
vehicle architecture | technology stack | |
Unrivaled portfolio with | Fleet of software- | |
leading technology | defined vehicle |
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Formation of new Joint Venture1 envisaged alongside Volkswagen Group investments in Rivian & Joint Venture
Investment | |
tranches | |
Up to $3bn 2 | |
in Rivian | Up to $2bn |
over time1 | |
in JV & back- | |
ground IP1, 2, 3 |
1
Joint Venture | |
50% | 50% |
Bundling of E/E activities | Balanced governance & | Intention to invest up to |
in new Joint Venture | joint control in JV | $5bn in total until 20261 |
1. Subject to the negotiation of definitive agreements | 2. Thereof up to $1bn via direct equity/IP considerations. And $1bn via loan agreement with an Option for JV & Rivian to draw the loan in 2026 | 3. IP = Intellectual property | 5 |
1 50/50 Joint Venture1 envisaged for joint creation of next- generation E/E architecture
Equal shareholding
Joint Venture
State of-the-art E/E solutions
Joint E/E capabilities & teams
Rivian to license2 existing E/E architecture, vehicle software expertise & resources
VW Group to contribute process, homologation expertise & SDV hub activities Joint creation of next-generation software stack for both parties
Rivian | VW Group |
vehicles | vehicles |
Balanced governance & joint control
Two Co-CEOs to run the joint venture
Rivian to appoint Co-CEO to be also CTO & VW Group to appoint Co-CEO to be also COO
1. Subject to the negotiation of definitive agreements | 2. Fully paid-up license | 6 |
1 Joint Venture1 supports early convergence of vehicle software stack on state-of-the-art E/E architecture
E3 1.12
CEA3
E3 1.22
Adapted | ||
E/E architecture | Next-gen. SDV | |
Fitting seamlessly into | JV to provide state-of- | Earlier convergence & |
global software strategy | the-art E/E architectures | higher cost efficiency |
1. Subject to the negotiation of definitive agreement | 2. Software stack by CARIAD | 3. CEA = China Electrical Architecture to be developed under Volkswagen Group's 'In China for China' strategy | 7 |
2 VW Group investments staggered over time subject to certain milestones2
Intention to invest up to $5bn in total until 20262
2024 net cash flow to | All payments based on |
be impacted by $2bn | certain milestones2 |
1. Conversion into Shares will take place after receipt of regulatory approvals, but not before 1st of December 2024 | 2. Subject to the negotiation of definitive agreements | 3. Option for JV & Rivian to draw the loan in 2026 | 8 |
Signing of Letter of Intent & convertible note followed by Joint Venture foundation targeted for Q4 2024
1. Filing for antitrust approval of equity investment in JV | 9 |
Partnership with Rivian underlines our execution focus according to our steering principles as presented at CMD 06/23
SMARTER,
FASTER,
LEANER.
Shift to | Speed & | Tailored local-for- | Selected & smart |
'best owner' | execution focus | local strategies | partnerships |
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Volkswagen AG published this content on 25 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2024 15:36:13 UTC.