German automaker Volkswagen Group announced plans to invest $5 billion in US electric vehicle manufacturer Rivian.
Rivian and Volkswagen Group plan to establish a joint venture to develop vehicle software technology, the companies said in a joint statement.
The statement said that Volkswagen Group will invest a total of 5 billion dollars in Rivian, initially 1 billion dollars, with additional investments planned up to 4 billion dollars.
The partnership will accelerate the software development process for Rivian and Volkswagen Group, the statement said, adding that it is expected to enable both companies to combine their complementary strengths and reduce the cost per vehicle by increasing scale and accelerating innovation globally.
