in vw Never spoils, always builds up: Wolfsburg company would like to acquire Toyota They tried to pass themselves off as the world's largest car company, but they were unsuccessful. With Bugatti they built the world's fastest production car and according to unofficial measurements it is now owned by a Ford GT defeated. Like Porsche, WKN PAH003″>Porsche Once he had the bold idea of taking over VW, it ended up being the other way around. In the less glamorous area, the company committed the longest-running fraud in the history of the automobile with the diesel scandal.
And now there is another big bang: after years of more or less successful in-house development, VW is no longer buying software for its electric cars, but the Wolfsburg-based company is investing in a whole group of electric cars. They chose the American manufacturer Rivian. VW will invest five billion dollars over the next few years to gradually increase its shares in Rivian.
Who now has anything to say about the deal that Rivian boss RJ Scaringe writes about in X: “This is exciting”? There are three perspectives:
Customer perspective: it doesn't matter
VW customers have had to wait a decade for competitive electric models from Volkswagen. When Tesla launched its first model on the German market in 2012, VW had nothing to counter it. Developing its own software not only tested the nerves of VW customers, but also of management, two of whom had to leave because it was too time-consuming. VW E models are already available worldwide. The cooperation with Rivian could provide a boost in this regard, but it does not have to be the case, as the Americans are not yet among the world leaders in terms of price and performance.
Group view: liberation, but only for one person
VW hopes to accelerate the development of its software. The price is not an obstacle for the Wolfsburg company: in 2020 they decided to invest around 73 billion euros in electric mobility, hybridization and digitalization. The equivalent of almost 4.8 billion euros for Rivian is comparatively less significant. Maybe it's more stressful not having to do double duty now. The VW Group, with its strong employee protection agreements, has invested billions in its own software teams and will not and will not be able to get rid of its developers. Achieving optimal integration with Rivian is a demanding management task.
For Rivian, however, the deal is a liberation: the Americans, who have so far built two independent models and a delivery van for Amazon, will receive the money they urgently need. Rivian delivered nearly 13,600 electric cars in the last quarter, generating sales of $1.2 billion and a loss of $1.45 billion. With VW next to it it is less bad. Competitors like Tesla will watch with interest. There is no immediate danger as the two companies will need time before gaining momentum together.
Shareholders' Perspective: Great Day, But Only for Some
Volkswagen shareholders lead a boring life, the stock is constantly trending downwards, so even a smaller takeover from the group's perspective makes no difference. It is clear to everyone that competition and structural changes have hit the German manufacturers hard; there is only something to be gained in the premium segment. Rivian shareholders experience the deal completely differently: their company, which was never able to get out of the red on its own, is suddenly in a safe place. The shares soared by more than a third. Everyone who was there in the last 24 hours had a great day. The dream of start-up investors – that an industry giant will take over at some point – has come true for Rivian investors.
The article “VW buys an electric car: Who really benefits from the Rivian deal” comes from Business Punk.