VOLKSWAGEN tested European EVs with American EV technology to see if they would benefit from Rvian technology – ended up with a 10-figure deal.
Audi has reportedly sent EVs from Germany for testing.
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Rivian, the EV manufacturer that produces the third-best-selling EV pickup truck, the R1T, has entered into a “life-saving” partnership with Volkswagen, the parent company of Audi, Lamborghini, Bentley, Porsche, Bugatti and more.
In a “secret” test carried out in California, Audi reportedly delivered some Audi EVs from Germany to Rivian’s production facilities, reported Reuters.
There, Rivian and VW workers removed electrical components from German electric vehicles and replaced them with Rivian ones.
The test consisted of finding out whether EVs from Volkswagen’s luxury division could benefit from “advanced” technology.
When the test was successful, Volkswagen struck a deal with Rivian CEO RJ Scaringe on a joint venture to supply the European automaker with American EV technology.
The venture provided Rivian with $5 billion, with the premise that with the funding, Rivian could improve the technology and provide Volkswagen with the technology for its EVs.
“We just dug in, talking about products and comparing notes on things we liked,” Scaringe told the outlet.
“There was an immediate realization that we have some common interests in vehicles. This quickly led to a serious conversation about how we can work together.”
As a long-time Porsche enthusiast, Scaringe couldn’t be more excited to know that his technology will be under the hood of future Porsche EVs.
“To be able to see a Porsche on the road that contains our technology, I couldn’t be more excited,” he said.
The financing was crucial for the small American electric vehicle maker, which has seen a steady decline in demand for its vehicles.
Volkswagen will benefit from reliable technology.
Little by little, Rivian is adding more vehicles to its lineup, as it currently only has two models available.
The compact and affordable R2 EV is currently in development, and this financing – which has been on the table for months – could help.
“This is not something we thought about a month ago,” Scaringe said of the “secret” tests with Volkswagen.
Why aren’t people buying EVs?
In January, many electric vehicle manufacturers reported sluggish demand. Rueters said there are a few valid reasons for the slowdown in demand:
- High initial costs. Many automakers, including Tesla, Hyundai and Ford, have carried out “price cuts” on their flagship electric vehicles to attract new buyers, even as demand remains sluggish.
- Higher insurance costs. Some insurers cite fire risks, high battery replacement costs and greater vehicle weight as reasons for higher premiums.
- Loaded anxiety. A large percentage of people remain afraid of finding themselves in a situation where they will not be able to charge if they run out of battery due to a lack of infrastructure.
- Range anxiety. In many cases, EVs still do not have the range and infrastructure of gas-powered vehicles.
- Poor performance at extreme temperatures. Reduced range in extremely hot or cold climates makes potential buyers wary.
Source: Reuters
“This has been a long work in progress.”
This type of joint venture is not uncommon in the automotive sector.
Subaru and Toyota have joined forces to refine Japanese electric and hybrid vehicles.
Subaru uses Toyota hybrid technology, as seen in the Crosstrek hybrid, as well as EV technology seen in the new Solterra EV.
Toyota benefits from Subaru’s undefeated symmetrical all-wheel drive system for its gasoline-powered vehicles.
Subaru will soon unveil a Forester and Outback hybrid using Toyota’s latest hybrid technology, assuring customers of its reliability.
This story originally appeared on The-sun.com read the full story
