VW and Rivian want to set up a joint venture

  • It was also reported yesterday in the German print media and in the main news programs. It was seen as a major offensive against Tesla.

    Be that as it may, once it is said that investments are being made in combustion engines, then such a report is made.

    The much more exciting question is, what is the strategy behind it?

    Is it a deliberate decision to pursue a two-track strategy because at the moment it is not certain which way the pendulum will swing in the end? In any case, there seems to be no consensus in the EU on what the best way forward is. Combustion engine phase-out from 2035 - yes / no / maybe??

    It remains exciting!

    Greetings, Wolfgang

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  • VW agreed with Rivian a year ago to look into a collaboration. Sanjay Lal from Rivian was appointed Chief Software Officer at Cariad. Apparently, last year was so promising that they are now taking the next big step and founding a joint venture in which they want to invest a total of 5 billion.

    It's not just about using the agility of a start-up to develop and refine software more quickly, but also about working together on hardware for the VW subsidiary Scout in the USA. Cariad will almost certainly be restructured and that is a good thing. Rivian, on the other hand, can make excellent use of the cash injection. With the 1 billion, the stock market value has risen by 6 billion. Rivian's products are excellent, but it lacks the money. VW has money, also thanks to us.

    Now, of course, we don't know what other areas of cooperation have been discussed. I can imagine that production specialists from VW will help Rivian and, conversely, perhaps VW will get an offshoot of the ingenious EDP. No, that's not the old word for IT, that's the Rivian delivery van for amazon that I regularly see here. A brilliant vehicle!

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  • It was also reported yesterday in the German print media and in the main news programs. It was seen as a major offensive against Tesla.

    Be that as it may, once it is said that investments are being made in combustion engines, then such a report is made.

    The much more exciting question is, what is the strategy behind it?

    Is it a deliberate decision to pursue a two-track strategy because at the moment it is not certain which way the pendulum will swing in the end? In any case, there seems to be no consensus in the EU on what the best way forward is. Combustion engine phase-out from 2035 - yes / no / maybe??

    It remains exciting!

    Greetings, Wolfgang

    In an industry that is undergoing radical change, you have to take a two-pronged approach. Profits are made with the old world and at the same time the new world cannibalizes the old world. But without the old world there is no money for the new world and without the new world there is no future.

    It's a very difficult situation, but if you don't invest in the new world, you go under. See Kodak, see Nokia. Nokia had a smartphone before anyone else (Nokia Commander, anyone who remembers), but was afraid to push it because it could affect the classic cell phones that were doing well. And by the time the iPhone was on the market, it was too late.

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  • I have a very simple opinion on the strategy of only electric or also combustion engines. Any car manufacturer that removes combustion engines from its portfolio is kicking itself out of large parts of the global market, as a charging station infrastructure is not feasible everywhere and many countries are not interested in greenwashing. And you can see every day in politics how quickly opinions can change. If someone had told Dr. Hofreiter five years ago that he was calling for arms deliveries to a war zone as a peacemaking measure, he would probably have beaten them up with a jute bag.

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    Mittfünfziger und gerade dabei, so langsam das Leben zu entschleunigen :) :)

  • I think that politics, especially corporate policy or corporate strategy, does not always have anything to do with common sense, but is rather a bet on the future.

    It is clear that sales markets have different framework conditions and are sometimes addressed with different products or solutions. Nevertheless, at some point I have to take the step and decide on a direction.

    As I said, it remains exciting.

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