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CONSUMER CYCLICALS: Volkswagen (VW): Rivian Investment

CONSUMER CYCLICALS

Seems like a sensible move from Volkswagen, not expecting credit impact for now

  • Volkswagen and Rivian announce an equally controlled and owned JV.
  • VW gets access to Rivian’s technology, having been criticised for developing software in-house up until now.
  • Rivian burns a lot of cash and gets much needed capital. VW will inject $5bn over the next 2.5 years. Initially $1bn via a convertible note, with a further $1bn in both 2025 and 2026. A further $2bn will go to the JV via and initial payment and a loan in 2026.

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