Volkswagen aims to expand its partnership with Rivian Automotive (RIVN), moving beyond their existing software collaboration, German news outlet Spiegel reported, citing Volkswagen Chief Executive Oliver Blume.
Blume said that the company is exploring options such as sharing modules and pooling purchasing volumes.
Volkswagen plans to invest nearly $6 billion in Rivian by the end of 2027, according to the report.
The core of the collaboration is a joint venture based in Silicon Valley, where Rivian's developers will work on a new electronic architecture for Volkswagen models. This architecture is based on Rivian's existing system, which uses small "control units" to streamline and enhance vehicle electronics.
The new architecture will help Volkswagen's brands, including Audi, Porsche, and the new US brand Scout. Scout is planning to produce electric SUVs and trucks in South Carolina starting in 2027, with a $2 billion investment from Volkswagen, the report added.
Blume dismissed speculation that Volkswagen might be developing a Scout competitor with Rivian, stating that the vehicles are "positioned completely differently," he was quoted as saying.
Shares of Rivian Automotive rose more than 3% in recent trading activity.
Rivian and Volkswagen didn't reply to MT Newswires' request for comments.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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