On June 25, American electric vehicle newcomer Rivian (NASDAQ: RIVN) announced that Rivian and Volkswagen Group (XETRA: VWO / VWO3) will establish a "jointly controlled and held" joint venture to create the next generation of electrical architectures and top-tier software technology.

According to the news released by Rivian:

On March 7 of this year, Rivian released its smaller-sized R2 model based on its mid-size platform for the first time. The cost of this brand new mid-size 5-seater SUV model will also be significantly reduced and is planned to be launched in the market in 2026 at a lower price, with a starting price of $45,000. Rivian will then launch the even smaller and lower-priced R3 hatchback model and the performance variant of R3, the R3X. This is probably a strategic adjustment made by Rivian in response to market changes and huge losses in 2023. Although Rivian's electric vehicle delivery volume in 2023 increased by 147%, from 20,322 vehicles in 2022 to 50,122 vehicles in 2023, Rivian's net loss in 2023 exceeded $5.4 billion, with a total loss of $16.8 billion in the past three years. Under cash flow pressure, Rivian will start production of the R2 model at the existing Normal plant in Illinois, instead of building a new factory in Georgia. In early May of this year, Rivian also obtained $827 million from the local government of Illinois for the expansion of the Normal plant.

R2

According to speculation by American media, Volkswagen Group's capital injection into Rivian will undoubtedly help Rivian to bring its new models to the market more quickly, but it is also expected to benefit Volkswagen's electric pickup brand Scout in the United States. The Scout brand under Volkswagen Group is investing $2 billion in building a factory in South Carolina to produce electric pickups and electric SUVs, and the construction of the factory started in February this year. After reaching production, it will produce up to 200,000 electric vehicles per year.

Scout was originally a classic pickup truck manufactured by the International Harvester Corporation from the 1960s to the 1980s. Volkswagen acquired the brand in 2020 and plans to evoke nostalgia and revive the Scout brand through this vehicle. The target pricing for the Scout EV is a starting price of $40,000, which is quite close to the starting price of $45,000 for Rivian's R2 electric SUV planned for launch in 2026.

The Scout EV electric vehicle factory of Volkswagen in the United States has started construction

The electric vehicle models currently sold by Volkswagen in the United States include the ID.4, ID.7, and the ID.Buzz electric van.