VW launches $5.8bn tie-up with Tesla rival Rivian
Volkswagen Group (VW) and Tesla rival Rivian have launched a joint venture, with the German car giant increasing its investment in the partnership.
The tie-up will see the firms sharing critical technology at a time of slowing global demand for electric cars and increased competition from Chinese rivals.
The joint venture provides loss-making Rivian with a crucial source of funding as it prepares for the launch next year of its R2 model - a sports utility vehicle (SUV) that is smaller and more affordable than its current offerings.
"By combining their complementary expertise, the two companies plan to reduce development costs and scale new technologies more quickly," the two companies said in a statement.
Under the plan, developers and software engineers from both firms will initially work side by side in California, while three other facilities in North America and Europe will be set up.
It comes as expectations have grown that VW, Europe's biggest car maker, is planning to announce major cost-cutting measures.
