VW's $5,8B Rivian Bet Could Be Different
Remember 2009? When Mercedes-Benz AG invested in a struggling startup called Tesla , helping them survive their darkest hour - as Elon Musk himself confirmed this February.
While Mercedes turned their 50M€ into 700M€ within five years, they also helped create one of their fiercest competitors today.
Fast forward to 2024, and we're witnessing what might seem like history repeating itself. Volkswagen just announced a $5,8B partnership with Rivian , right in the middle of their own cost-cutting program that might affect 10.000 jobs in Germany. But here's why this could be different. Volkswagen is playing an intriguing double game. While partnering with Rivian for Western markets, they've quietly built a strong position in Asia through their partnership with XPENG Motors 小鹏汽车 , where they own a 4.99% stake. This dual strategy might be more brilliant than it first appears.
The new joint venture, Rivian and Volkswagen Group Technologies (RVGT), isn't just about throwing money at a promising startup. It's a strategic move to fix what CARIAD couldn't deliver. Yes, $3,5B will help stabilize Rivian, but the remaining $2,3B is for actual joint development.
Let's be frank - the Rivian numbers aren't pretty. They lost $5,4B last year, more than their revenue. They're delivering around 10.000 vehicles per quarter while VW ships 2,2 million. But what they lack in scale, they make up for in software architecture & EV expertise.
The real potential lies in RVGTs ambition to create an industry standard. While they won't accept other manufacturers as partners, they're planning to license their technology. This could be the automotive industry's Android moment - a standardized platform that benefits everyone.
Will it work? The first cars with the new SSP technology won't hit the roads until 2027. That's an eternity in tech years. While the Rivian deal makes headlines in the West, VW's Asian strategy might be the real game-changer. But if they pull it off this could be the partnership that finally bridges the gap between traditional automaking & Silicon Valley innovation.
I'm looking forward to discussing this at the #CarHMI show in #Detroit this December. Let's connect if you're attending - I'd love to hear your thoughts on whether this is indeed Daimler-Tesla 2.0 story or something entirely different.