July 30, 2024 – The German antitrust regulatory authority, the Bundeskartellamt, announced on July 29 local time that it has approved the establishment of a 50%-50% joint venture between Volkswagen and the American automotive startup Rivian. The regulator also gave the nod for Volkswagen to acquire a minority stake in Rivian.
Volkswagen had previously declared its plans to invest $5 billion in Rivian on June 26th, Beijing time. The two companies will collaboratively develop the electronic and electrical (E/E) architecture for the next generation of electric vehicles through this joint venture.
Volkswagen’s investment in Rivian will also aid the latter in developing its new Rivian R2 model and completing the construction of its factory in Georgia, USA.
Andreas Mundt, the president of the Bundeskartellamt, stated that the core of this collaborative project (E/E architecture development) lies in determining the optimal organization of numerous intricate functions and components within the vehicle, along with understanding how they interact.
As automobiles become increasingly digitized and connected, having the right system architecture has emerged as a crucial aspect of competition.
When it comes to collaborative projects established for developing cutting-edge new products and technologies, especially those involving large corporations, we keep a keen eye on competition within innovation, Mundt added.
This particular project has raised no concerns and has not given rise to any other significant competitive issues.
