Rivian and Volkswagen gain German approval
It's been over a month since Rivian and VW announced the landmark alliance. The new partnership will use Rivian's software expertise to develop an architecture for next-gen EVs.
Volkswagen will invest up to $5 billion, $3 billion of which will go to Rivian and $2 billion in the joint venture. However, these investments are based on meeting "certain milestones."
The partnership took a big step forward on Monday after gaining approval from German competition authorities.
The Bundeskartellamt announced it has "cleared under merger control the formation of a joint venture between Volkswagen and US electric car manufacturer Rivian." The office also approved VW's investment in Rivian.
Andreas Mundt, president of the Bundeskartellamt, explained that the Rivian and Volkswagen JV is "not expected to significantly impede effective competition."
In a statement released Monday, the agency added, "There will continue to be a sufficient range of services available to car manufacturers to build E/E architectures."