Why VW is giving US EV maker Rivian $5 Billion dollars
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- Опубликовано: 5 сен 2024
- Why VW is giving US EV maker Rivian $5 Billion dollars
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#volkswagen #rivian #rivianevs #dollars #evmaker #manufacturing #factory
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VW fired Herbert Diess for going all in on EVs. But, isn't paying $5 billion to Rivian for its EV technology an admission that Herbert Diess was on the right track?
Diess spoke the truth; got hin fired.
VW is a flooding company trying whatever they can to change things, like a bad swimmer, they try to move... Rivian is so bad in anything, far from Xpeng, and even from Lucid!
They did not fire him for going all in on EVs. They fired him because he did a shit Job in doing so.
VW is very slowly trying to pull their head out of their ass, i doubt if they ever totally get it out.
@@s.g.3901 Back in those days there was no "right" way to do that job, all automakers were scrambling to figure out what to do and all of them made the wrong decision at least once. It's a learning curve and to make it worse it's a moving target. Herbert might have said too much out loud and that might have been the problem. VW clearly didn't have the ability to compete and their attempt to buy into China and Rivian proves that.
Very interesting development. I hope Rivian hasn't attached itself to a boat anchor!
Does this mean VW might actually get software that works?
Buying VW has always been risky business and Rivian need to improve their quality. Build it cheaply and keep the profits high will be their ruin !
That is what Tesla did, Worked for them.
Have you ever been in a Rivian?
I don’t want to drive a truck or SUV but the Rivian R1T and R1S look great to me. I hope they stay in business long enough to make the next vehicle lines, and this will help a lot.
The R3 appeals most to me. I'd consider replacing my little car with that.
This is great for Rivian, and will help VW too.
They are both going down.
@@chillfluencer That is for sure, vw since dieselgate is only doing stupid things!
for 5 billion VW gets great tech, rivian gets enough money that will delay bankruptcy for one more year.
No. They put up 1 billion. Not 5 we will see if the other 4 ever make it.. 😅
I'm not sure this will save VW. They need to reduce their costs massively and very quickly to compete with the Chinese tsunami about to hit us.
Not just the government is preventing Chinese tsunami to hit the US, I think almost no one in the US will jump into Chinese tsunami.
I'm waiting on the Zeeker or Geeley EV to come here.
VW Neither respected or admired after lying over & over about emissions
Toyota diselgat , crachgate ...
Who cares, emissions suck.
It's been over 4 days since your return from your freebie to China? Why has there been no report on what you saw or drove etc?
Seems a bit strange to me.
Very disappointing Viking. Why no stories ?
There is no question at all that Herbert was on the right track. Pity another large company does not pick him up.
I will never buy a Rivian as long as their headlights look like that. O----O
Looks like 2 Edsels coming at you. We'll know what happened to them
And I will never buy a car that looks like a big cereal box with tank wheels and a open box in the back where thieves can steal.
I would buy a white one so it feels I am driving baymax...
What is your ailment??? 😂
For me this is VW confirming that the future is electric, something other legacy car makers publicly refuse to do. This move may well save VW. If the other big car makers don't do something similar they will find themselves circling the plughole.
Depends on your outlook. Rivian lost US$5bn in 2023, and projects to lose US$4bn in 2024. They will most likely continue to lose money in the coming years. Tesla lost money for over a decade until it started booking profits from 2020.
@@yo2trader539 I would imagine the strategy is more of a technology and knowledge grab more than a profit making move
Fully agree. Rivian is awesome. Feels like a brand that deserves to do well. Good on VW on making the investment
Thanks for the update seen this on a article earlier today! Couldn’t wait for the video !
Hope you enjoyed it!
Read the thing properly. They did not give Rivian 5 billion,only 1 billion..There is only an agreement between them,You video is wrong
That’s not what he said. Watch the video again
Rivian's are too expensive for me but after riding in one, wow the R1T is so nice and well made.
I love the R1. Definitely too expensive for me too. I’m waiting patiently for the R2 in 2026.
@@andrewjohnson2553you can afford a used one if you want. I see some nice ones in the low 50,000 dollar range
I’m actually excited about this partnership. Hope VW treat Rivian with respect.
VW has apparently committed to an initial $1B deposit, pending the JV agreement, etc., being signed, sealed, and detailed. They might provide the remaining $4B in dribs and drabs as the JV delivers results. Saying that VW has already delivered or paid or furnished or whatever $5B to Rivian is grossly inaccurate.
OK! VW’s major component of debt is through its leasing company providing finance. Secondly is not Volkswagen, it’s the Volkswagen Group. Meaning they are an umbrella brand owning, investing in multiple brands of Auto makers and suppliers. So it’s no surprise to me at least that strategically they’ve poured investments into Rivian, XPeng and other tech brands, wherever they are. Good news as far as I’m concerned. Win win.
This the best news for ev adoption, Rivian at the cutting edge and VW mass production ,because we can't just rely on the whims of Elon Musk. A Rivian Van on ever street would transform the commercial market ,so what ever you think of VW it looks like they are finally taking it seriously now !! Let's hope it works!!
Don't think I would call rivian cutting edge, but definitely a huge step up as far as software goes. VW still has issues with manufacturing costs though.
Totally agree with not kicking EV companies when they are down . This does no good for the broader mission of EV transition from ICE. Rivian has a bright future ahead and more choice is always good for the customer and absolutely essential if we want to get more ICE customers into EV’s
02:32 - US$ 186 billion of debt? Research again:
As of the latest financial data from 2024, Volkswagen's total debt stands at approximately US$ 210 billion.
Which is mostly credit given to consumers to buy their products
VW still hasn’t got the ID.4 software sorted? I haven’t heard much about it lately.
I think that's why they are going to switch to Rivian software.
Teslas catch fire in front of Rocklin dealership, USA, hope no one was hurt 😭
EVs are always catching fire on hwy 80 and hwy 5 . We drive those roads all the time.
From what I read, exhaust from a truck ignited the grass in front of the Tesla vehicles and they subsequently caught on fire.
Rivian has been reporting and projecting for quite awhile now (beginning a year ago or more) that they would turn gross margin positive in the 4th quarter of 2024, as a result of a redesign of the R1S, R1T, and the EDV 500 and 700 delivery vans and as the result of a redesign of its manufacturing processes. Rivian is not "in a terrible position" and hasn't been. Rivian has developed world-class technology (suggested by the VW deal) and has ready access to the capital markets. In fact, once the company becomes gross margin positive, it will demonstrate something no BEV startup has been able to achieve--including Tesla: Gross margin positive performance within three years of starting production. (It took Tesla 10 years to achieve this.) Yes, they're small. Compare them to other BEV startups, and you'll find that they are manufacturing and selling more vehicles (at the three-year point) than anyone else at the same point in time. Of course, they are small. They are a startup.
I wouldn’t be surprised to see Rivian’s upcoming Georgia factory building the Rivian R2/R3 and VW Scout side by side in a few years. The Rivians would be trimmed out to compete with Land Rover Discovery/Defender and VW Scout to go directly against Wrangler and Bronco.
A lot of untrue infos about VW, like the 5bn payment (for the moment just 1 bn in convertible notes, 1+1 bn in '25 and' 26 depending on Rivian KPI, 1 bn at JV start and 1 bn as a loan in JV), the terrible disaster for Id.4 (one of the best sales for VW in USA and increasing with the new updated model) and so on...
You must not be American if you think vw is anything but a total disaster in the US car market
You keep saying this about VW being in debt, yet, the fact is that most, if not all of this debt is due to the finance side of their business. In other words, the money they’ve lent to customers to buy their product. The same as all the large manufacturers do.
Exactly... He does not seem to get this..😅😆
Customer loans don't finance factories or operating expenses.
Some are saying that VW will buy Rivian in a few years and put it under the VW banner, But VW wants to see how easy it is to work with Rivian first.
I think This deal will go down the drain, if Mercedes & BMW turned it down. Big price to pay for Rivian software, which is average.
I think this is smart. Already the shares purchased in Rivian have massively increased in value and if they sold them now VW would show a good profit. However their competitors BYD, SAIC, Tesla etc etc are too powerful and VW will slowly diminish.
the VW beetle and the VW van are iconic.
The iconic brand belonging to VW but intended to run separately is SCOUT. The brand is old one belonging to International Harvester. The latter builds trucks but used to built off roading oriented vehicles called SCOUT. VW bought entirely International Harvester company. SCOUT is going to directly compete with Rivian. Consequently the SCOUT brand has to be good and looking differently from Rivian but with Rivian software.
The software on the 2024 ID4 is much improved but OTA is what VW lacks and that’s what Rivian brings to the table.
Always interesting to see the outside perspective. Time will tell. Suggest watching the Carmudgeon show’s Piechisode if you want insight into the workings of VW Group.
as a Rivian investor , I like the Idea of VW - one thing is Europe - and Asia, I have the R 2 S on order , I lve in Thailand but still have storage in California that I can store until I can bring it to thailand
I think Rivian cars are left hand drive only.
Thailand current law is banned importing used cars. So you should not keeping the car in the US so long before send it to Thailand. (Maybe 60 days or more) Should bought it as a new car and send it to Thailand immediately.
Except if you are a foreign ambassador. International exemptions may apply. There may not be any restrictions on the age of the vehicle.
@@undisclosedthai I know that, Lao's is Left handed , I plan to register in Vientaine at Friends and drive across to Udon Thani, there is a huge Lao community here in Thailand and they drive left handed here , no problem , sometimes at Bangkok Hospital they have over welmed the parking lot.
I think these ev companies need to give you a free ev because you have changed my mind about EVs now iam going to buy one
It would be great to see Rivian and VW collaborate on an affordable EV for the larger market. EVs are currently too expensive for the average buyer. If the two could work on bringing a really affordable and good quality EV to America, it would accelerate the transition from ICE vehicles. Otherwise, there will be no competition for Chinese manufacturers in the larger market. Both Rivian and VW have strengths and weaknesses. Thus, this deal will help each to compensate for their shortcomings and capitalize on their strength. So, this is good news for the EV industry.
Sam the new plant in Blythewood SC is South Carolina.
They also bought a big stake in Gotion-Hightech.. Batteries
As a consumer I’d hope that VW will use its networks roll out the Rivian vehicles in Europe. As a German I hope VW is finally getting to grips with their software architecture(s), also in respect of the EVs, as this is the only way to protect any jobs here.
This is likely to happen. I can also see VW taking rivian over in a few years.
I truly believe Rivian needs to partner up with a strong automotive company to ensure their survival. I think working on this yesterday is not soon enough. They are bleeding money and don't have the resources to weather hard times.
Be perfect 4x4 for me it it ever gets to Australia.
Is VW doing a hell Mary pass to save its self?
I'll stick with Tesla.
Me too 😂
If Thailand's Tesla sale and services spreading out to my province, I will choose Tesla too.
I own both. Tesla doesn't come remotely close IMPE.
Have dumped one of our Teslas for Porsche and will likely dump the second for Rivian. Because of Elon. He’s a hypocrite.
The Golf is iconic, the GTI is iconic, the Beetle was an icon...what I hope the intended meaning is that the Golf and GTI will transition from an iconic ICEV to an iconic EV. Probably too much to ask for a Beetle EV.
VW might as well invest in BYD or Nio for software/design partnerships..5B.. goodness.. wasted..if its true.
Why? Rivian makes a great vehicle
BYD and NIO are shit compared to Rivian
VW is also involved with Mobileye.
It seems to that it was a good idea for these companies to make a deal, but I’m not sure this is the deal either company needed.
I think what a lot of people overlook is the Rivian’s delivery van business. It’s a massive market and Rivian will attract a lot of business customers. As you know they already have a 100000 vehicle contract with Amazon and they are also supplying power train and chassis to Morgan Olson.
Will this marriage result in cheaper EVs to counter Chinese pricing?
To me, price is s the ultimate determinant of making it in the marketplace,of course tech matters too,but the way the Chinese are aggressively introducing their models is something to be worried about.
Doesn’t W Have multitude of ways to get out of this deal? Certain metrics have to be met?
I think this has been going on for a while. The Rivian R3 and R3X look too similar to the VW ID2 and GTI concepts. They probably just decided to announce the merger now.
I think it’s a good match. This could be a two way street. Vw obviously needs the software. I mean it’s gotten better this year but better does not mean good in this case. Rivian on the other hand could really learn how to streamline the building process. They still work way too artisanal. And you can say what you want about VW but apart from Tesla which is the fastest car producer VW is the second fastest in the western world.
Main stream media in Norway reports today that VW is closing all production of EV cars. Maybe VW is actually splitting up? Sell your stocks quick :) Buy Rivian!
Good on VW at least they are on the right EV growth track!!!
No they are not!
I agree
Love Rivian ❤
The R3 also look like older Golf/rabbit, maybe they can make a great car together.
...for the same reason VW throws money at XPENG: desperation. A big chunk of VW is owned by the state of Lower Saxony (Niedersachsen) - and since VW is going down now big trouble is ahead since that will impoverish Lower Saxony massively. And we're not even talking about all of the mass unemployment if Tesla, China and South Korea do not take over all of the German factories.
What are you rambling about?
Vw is good car. What fix ?
Who is going to buy Fisker
Whats vw scout?
All they have to do is make an operational profit on each EV. Tesla operating profit, 18% margin, ~3x better than BYD, the only two known to make EV profits.
Rivian stockholders need to understand that VW was locked into a low price for the Rivian stock when they buy it from Rivian. Rivian is therefore diluting its stock.
VW gets its hands on Rivian's software and later, if the joint venture is finalized... it's not yet.... then VW "might" invest a further 4 billion.
My guts tell me that VW will get the software and then cut and run.
Cheers mate
Rivian will soon be making PHEVs with vw diesel engines in them
I have an ID4 and live in Colorado USA . Whenever I travel I use electrify America because it is free to me for 3 years. Almost every time I charge I’m next to a Rivian. I’m actually surprised how many Rivians are in my state. Almost every person I talk to loves their truck. I don’t understand the comments knocking this. Rivian is basically in the same phase Tesla is when they only had the model X and S once they get the smaller SUVs they are going to be fine
Rivian make good trucks. Management is a bit shifty.
It's not necessarily about quality of Rivian trucks. Rivian sold 50,000 vehicles in 2023, but posted US$5.4bn in net losses. This is a common issue for almost all automakers with BEVs. They need to mass-produce the same model to cut manufacturing/procurement costs, but there isn't the necessary demand in volume. Tesla is the exception, as it only has a few models and sold 1.8 mn vehicles in 2023.
Their financials look terrible. They're going bankrupt fast like fisker, nikola, lucid. Nice cars but not affordable and no real volume for economies of scale
@@yo2trader539 50 thousand is a great number given they have yet to roll out the r2 and r3. They are basically in the same place where Tesla was when they only had the S and X. Tesla was loosing tons of money and asking Apple to buy them out. Just 6 years ago. The reason that this is such a good deal is it allows Rivian to have the capital to bridge the gap from the T1/R1 to the R2/R3 which will be more high volume vehicles and given there cars are so well liked by customers I’m sure they will. That is why their stock shot through the roof. They are no longer in danger of running out of liquidity as they expand
@@larryc1616 most companies don’t have economies of scale when they start and go through a loss phase, especially a company in a such capital intensive industry as the auto industry. It was no different than Tesla which was losing money hand over fist for a decade until they were able to rollout the 3 and Y and there were many times where they faced going under. You can’t compare the companies you brought up to Rivian as Rivian is much farther ahead as they delivered over 50k vehicles last year which is more than both Fisker and lucid have delivered since their inception combined . Also they are very close to rolling out more affordable vehicles that no doubt will have much more demand. There issue has been will they have the capital needed to roll out their new projects. This deal makes it look highly likely and this is shown by their stock price going through the roof after the deal was announced
Morning mate
Rivians smaller cars did have a look of the old 1990s golf at the back
From the side a Plymouth Horizon.
@@jamesvandamme7786 yes
VW can't write software. They need something usable fast!
It would not surprise me to see VW dealers soon selling Rivians. VW needs some exciting EV product . Rivian provides that right away.
The time to make EVs good is long past - these problems should have been sorted out before the vehicles were put on the roads......
Uhhh…. “The time to make EVs good long past”💀 you talking about before Tesla came up or are you under a rock?
it will end with tears for Rivian. they just have to recall the Suzuki/ VW partnership. VW lost A huge amount of money law suit to Suzuki.
VW are losing their minds with all this money but it's good for Rivian but the cars are high in price.
VW is completely lost in the EV transition. VW is just throwing stuff on the wall to see what sticks. They likely won't invest the full $5Bn as this is more a PR stunt than true JV. And I doubt Rivian software is that great since Ford, an early RVN investor, sold all their shares presumably because they didn't like what they saw. As auto analysts say, you need to be making at least 250K cars a year to turn a profit. RVN this year at ~57K
Yes , yes . Great news .
Viking, since you do all this research for us already, do you know where VW gets 5B $, when their credit rating is probably bad?
Dear Viking, would you consider to do some research, before publishing videos about firms, other than Tesla or BYD? Especially the financial situation of Volkswagen Group is quite different from your repeated false claims. VW BBB+, Tesla BBB. The investment in Rivian is less than 1% of the revenue.
VW should takeover Rivian. After that, bring Rivian and Scout to Thailand, since VW seems to love Lao market much more than Thai market. (Lao people can buy VW ID cars. I can't.)
5 billion for transfusion
It looks like hey want access to Rivian's software capabilities. Also Rivian has been investing in vertical integration. So an 8% stake in Rivian makes sense.
Great update
Do you realy think that Rivian can fix all VW vehicles in the US?
Where is Mr. Diess now? VW, bring him back if you want to have a future.
Dr. Diess works as a consultant for Volkswagen.
Vw spends like headless chook, after all it is just shareholder’s money, got more where it came from
I guess this proves how difficult it is to hire competent software engineers. VW isn't stupid, they have plenty of money to hire the best people yet they still couldn't design good EV software. Maybe it's a patent issue, don't know. At least they figured out a good plan B. Don't worry about China, the EU and US won't allow them to flood the market with heavily subsidized cars and put their legacy automakers out of business. Especially after those governments literally passed laws forcing those same automakers to spend billions on EV's in the first place. That's political suicide.
Competition is good for us
Rivian stock rose 23% yesterday on news of the Volkswagen cash life line.
This is good news for both companies!
Tesla is the only way to go for now. IMO
They need to design some new vehicles. Unless Elon has lost interest.
This is a very bad news, these 5 billions are lost, not like the 5 billions they will have to pay to Xpeng as they already paid only 700 millions $, which is far not enough to protect the future of Bentley, Porsche, Volkswagen and other Volkswagen Group brands ... Now they are just trying to grab something as a handle to keep some time of activity, nothing serious... Xpeng is far too good for Volkswagen Group and even for BMW Group, they used them for Porsche for standard horizontal line permanent lightning... Only Xpeng and Chinese brands do this adaptively as it should be done in real situation!
Rivian has no chance for longer term survival.
A very good thing.
Two desperate companies don't make a good company. This is a clue that Amazon is done throwing money down the black hole of Rivian.
I wonder how much Rivian makes on delivery vans.
Rivian cant sell too many cars...until they start having true scale...they are a dead horse. VW should buy them somehow.
Rivian is gonna make money on it's vehicles? Nope. They lose.$100,000 on every one they sell.
That was then. It doesn't scale like that.
@jamesvandamme7786 nope...they're still there and you know it...
@@skylershank9309 If they redesign and make more, the loss keeps diminishing until they turn a profit. It took years for Tesla, but Rivian is making faster progress. And they're unencumbered by legacy ... everything.
Still gonna buy Tesla no chinese or vw or crappy toyota
Love this partnership...both teams will benefit!
So VW tries to reduce profitability by using help of money loosing high-end of the market Rivian ? Better partner with low price Chinese company.