Volkswagen stock slips on cost, implications of Rivian JV; Rivian soars
BERLIN -Volkswagen shares fell 2% on Wednesday as investors worried about the cost and uncertainties of a joint venture with U.S. electric-vehicle maker Rivian from a go-it-alone strategy to bringing in expertise via partnerships in key areas for electrification, from batteries to EV platforms to software.
"Cariad should and will disappear. The reality is it's going to become irrelevant and die a natural death," said Jefferies analyst Philippe Houchois, adding that no other legacy carmaker had managed to build a competitive software offering alone. The JV will be a repository of Rivian's existing intellectual property, and the company's upcoming R2 SUV will be the first vehicle to use software from the venture. Volkswagen vehicles, including its Audi, Porsche, Lamborghini and Bentley brands, will follow.
While the software developed with Xpeng is intended for use only in China, that developed with Rivian could technically be used anywhere, the VW spokesperson said, adding the specifics were not yet decided. MORE CAPEX "Joining forces in this way may also help lower the cost-per-vehicle and bolster defences against the growing might of Chinese EV makers," said Susannah Streeter, head of money and markets at Hargreaves Lansdown."While the transaction could make sense strategically ... we believe investors would prefer VW to sell assets, not buy them," Stifel Research said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rivian stock surges 36% after announcing $5 billion joint venture with VolkswagenRivian stock surges 36% after announcing $5 billion joint venture with Volkswagen
Read more »
Rivian soars as Volkswagen plows $5B into struggling EV maker: 'Game changer'VW said it would initially invest $1 billion into a joint venture to create what was described as a “next generation software-defined vehicle platform” that will be used in both firms’ electric car…
Read more »
These Are The Worst Used Electric Cars, According To Consumer ReportsTesla, Hyundai, Rivian, Volkswagen, Chevrolet and Audi all have a place on Consumer Reports’s list.
Read more »
Volkswagen Group to make up to $5bn investment in Rivian for software helpCAR magazine UK reveals the news that Volkswagen Group and Rivian are teaming up to develop new car sofware
Read more »
Volkswagen’s Rivian Deal Points To Bigger U.S. AmbitionsAs a former European Automotive correspondent for Reuters, I’ve a spent a few years writing about the industry. I will penetrate the corporate hype and bluster and find out how these gigantic enterprises are really doing. I also love to drive their magnificent machines, and their more modest ones. I’ll be telling you if the technology works, too.
Read more »
Rivian shares soar on massive cash injection from Volkswagen, starting immediately with $1 billionShares of Rivian are soaring before the opening bell after Volkswagen agreed to invest $1 billion in the electric vehicle maker immediately and a potential total of up to $5 billion as part of a software development agreement
Read more »