Morningstar DBRS’ Post

Rivian and Volkswagen: We Now Pronounce You Partners! I woke up to a huge update in the automotive world today! Rivian and Volkswagen have just announced a joint venture with VW investing up to $5 billion into the EV maker. And here's why I believe this is a game-changer for the SDV scene in America: • 𝐓𝐡𝐞 𝐃𝐞𝐚𝐥: VW's $5 billion investment aims to create a next-generation SDV platform. This collaboration leverages Rivian's cutting-edge EV technology and VW's extensive resources. • 𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐒𝐃𝐕: With combined expertise, the focus will be on developing superior software architecture and EV tech, driving the industry forward, accelerating SDV technology. • 𝐅𝐮𝐭𝐮𝐫𝐞 𝐏𝐫𝐨𝐬𝐩𝐞𝐜𝐭𝐬: This move could set a precedent for more such alliances in the future, highlighting the industry's shift towards SDVs. As more automakers recognize the importance of advanced software in vehicles, we can expect to see similar collaborations reshaping the automotive landscape. This deal is the future of transportation. With SDVs becoming the new frontier, this partnership marks a significant step towards more innovative, efficient, and connected vehicles. How do you think this will impact the future of SDVs ? #Rivian #Volkswagen #EV #SDV #Innovation #AutomotiveIndustry #FutureOfMobility

The JV is not a done deal… yet! Volkswagen’s potential $5 billion total collab with Rivian is still pending, with several key factors yet to be resolved. → The integration of Rivian’s electrical architecture into Volkswagen vehicles is under review. → Ongoing negotiations between the parties need to be finalized. → Necessary regulatory approvals must be achieved. → Fact: VW will invest $1 bn in Rivian. → The expected benefits is that future Volkswagen EVs could use Rivian’s advanced SDV technology and scaled platform. Rivian would gain strategic capital and vast retail market access. → #AutomotiveIndustry Impact: This could accelerate EV development, adoption through affordability and inspire similar collaborations between other automakers. Volkswagen has not yet made a final decision. The industry is closely watching these developments, which could significantly impact EV innovation and scale. #Volkswagen #Rivian #EV #ElectricVehicles #AutomotiveInnovation #TechCollaboration #Sustainability #FutureOfMobility Volkswagen Group Rivian

Last month, Volkswagen made a big splash when it announced plans to invest up to $5 billion in Rivian Automotive until 2026 as part of a venture to share #ElectricVehicle (EV) platforms and software. On paper the deal appears a win-win for both parties — one gets the much-needed cash infusion to boost operations and expansion, the other gets access to tried and tested software and electrical/electronic (E/E) architecture it has struggled to develop in-house. However, will this partnership allow Volkswagen to leapfrog competitors in the EV race and build a #sustainable business around the software-defined vehicle (SDV)? Read S&P Global Mobility's article to find out >> https://okt.to/Jtaxuk

Rivian has teased five new electric vehicle models in its latest shareholder letter, sparking industry speculation. The teaser photo hints at models beyond the R2, R3, and R3X, showcasing potential new designs and trims. This announcement highlights Rivian's ongoing innovation in the EV market. Additionally, Volkswagen plans to invest up to $5 billion in Rivian, indicating a potential joint venture and further integration of Rivian’s software and electrical architecture. These developments underscore Rivian's commitment to expanding its EV lineup and solidifying its position as a key player in the electric vehicle industry. https://lnkd.in/gjJa8wEG #Rivian #ElectricVehicles #EV #EVInnovation #RivianTeaser #FutureOfMobility #Volkswagen #EVModels #SustainableTransport #ElectricSUV #AutoIndustry #EVMarket #CleanEnergy #GreenTech #VehicleDesign #EVNews #TechInvestments #ElectricTrucks #AutoTech #NextGenEVs

🗣 “Rivian was worth more than Volkswagen in just 2021, but now Volkswagen is rescuing Rivian with a $5 billion phased bailout.” ⚡ It could be several years before Volkswagen’s investment in Rivian impacts its revenues. 🎥 Yesterday, Cyrus Mewawalla, Head of the GlobalData Thematic Intelligence team, spoke with Sílvia Amaro at CNBC, on Volkswagen’s $5 billion investment in Rivian. 🚨 According to GlobalData Plc, 89 million cars will be sold in 2024 but only about 15% of these will be EVs. 👇 Watch the full interview below 👇 #VW #EV #autonomousdriving #electricvehicles #automotive #car

The collaboration between VW and Rivian highlights the importance of merging new technology with manufacturing expertise for both established and emerging companies to thrive in today's environment. Driving a Rivian offers a glimpse into a futuristic cabin with cutting-edge technology, contrasting with VW's more traditional approach. This shift signifies a notable change in the longstanding relationship between car manufacturers and their suppliers, a dynamic worth monitoring closely. #VW #Rivian #Collaboration #Technology #Manufacturing #AutomotiveIndustry

Rivian CEO RJ Scaringe explained why partnerships with Ford and Mercedes-Benz failed. The incompatibility of Rivian's unique network architectures with the traditional OEMs' complex systems was the main issue. Despite significant investments and initial plans, these collaborations couldn't align their technological frameworks. Rivian's focus on in-house technology development remains strong, as seen in its new partnership with Volkswagen. This shift aims to strengthen Rivian's position in the competitive EV market and emphasizes the importance of technological coherence. https://lnkd.in/g6vNAb4p #Rivian #Ford #MercedesBenz #EV #ElectricVehicles #RJScaringe #Automotive #EVPartnerships #TechDevelopment #InHouseTech #Volkswagen #VW #EVIndustry #ElectricVans #SustainableTransport #GreenEnergy #OEM #AutoIndustry #ElectricMobility #EVNews

Rivian denied reports about plans to produce EVs with Volkswagen, emphasizing their focus on in-house production. This follows a German media claim about early discussions for EV production collaboration. Rivian remains committed to building the R2 at its Illinois plant and a future Georgia factory. Despite this, the existing software collaboration between the two companies continues, with Volkswagen planning a significant investment in Rivian. The denial of the production plans caused Rivian's stock to fall slightly. https://lnkd.in/g_prjEid #Rivian #Volkswagen #EVProduction #ElectricVehicles #InHouseProduction #RivianR2 #SoftwareCollaboration #GreenTech #SustainableTransport #EVNews #AutomotiveIndustry #TechInvestment #VW #EVStock #RivianStock #AutoManufacturing #Illinois #Georgia #ElectricSUV #InnovationInEVs

#RivianAutomotive Inc (NASDAQ:RIVN) shares traded higher on Thursday after it was announced that the electric vehicle (EV) maker will be supplying vehicles for telecommunication giant #ATandT Inc. (NYSE:T)'s fleet. AT&T expects to begin adding the Rivian Commercial Van and R1 vehicles to its fleet starting in early 2024 as part of a pilot program aimed at reducing its transport-related carbon emissions. The companies also announced that AT&T would be Rivian’s exclusive connectivity provider for its vehicles in the United States and Canada. With AT&T connectivity, Rivian will use software updates to consistently improve its vehicles with new features that elevate the driving experience for its customers. More at #Proactive #ProactiveInvestors #NASDAQ #RIVN http://ow.ly/wOxm1055Frk

Let’s examine the extent to which Volkswagen will benefit from this partnership: it’s worth noting that Rivian made significant strides in cost-cutting in 2023, and VW will likely benefit from reduced costs in its truck EV R&D. Rivian Q1/2024 results: Gross margin on vehicles improved slightly, with a loss of $38,784 per vehicle as opposed to $43,372 per vehicle in the previous quarter. The gross margin improvement shows progress, but gross margins are still worse than they were in Q2 and Q3 of last year, at -$32k and -$30k respectively.