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Transportation Businesses

VW To Invest Up To $5 Billion In EV Maker Rivian (reuters.com) 63

Volkswagen today announced it will invest up to $5 billion in U.S. electric-vehicle maker Rivian as part of a new, equally controlled joint venture to share EV architecture and software. Shares surged 40% in extended Nasdaq trading after the announcement. Reuters reports: The investment will provide Rivian - known for its flagship R1S SUVs and R1T pickups - the funding it needs to develop its less-expensive and smaller R2 SUVs that are set to roll out in 2026, CEO RJ Scaringe told Reuters. Volkswagen will initially invest $1 billion in Rivian and a further $4 billion in investments later, the companies said. The partnership will help Volkswagen accelerate its plans to develop software-defined vehicles (SDV), with Rivian licensing its existing intellectual property rights to the joint venture.
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VW To Invest Up To $5 Billion In EV Maker Rivian

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  • by locater16 ( 2326718 ) on Tuesday June 25, 2024 @04:42PM (#64577983)
    Despite the EV woe clickbait, Consumer Reports has Rivian near the top in customer satisfaction. And with a possible sale of Apple's self driving division to Rivian now having the $$$ to back it up they'd have the only real candidate for a complete personal use self driving setup apart from Tesla (no, Google's "just map every single road all the time forever" strategy and Chinese vapid hype is not good competition, at least not for personal use vehicles rather than robotaxis only operating in major cities).

    Rivian needs to learn how build efficient EV's, both in terms of building them cheaply and in terms of their mileage. But high customer satisfaction is a barrier many other EV makers that can build relatively efficient EVs have yet to crack. So maybe efficiency is easier than customer satisfaction. Either way it's nice to see a company with real potential survive the inevitable derailment of the hype train into "now we actually need to make money" territory.
    • by Tablizer ( 95088 )

      For pickup trucks, why not just make it easy to add extra batteries in the pickup bed so those who plan or like long trips can add batteries if needed?

      Thus, you could exchange cargo size for range.

      Even a sedan could have a trunk-battery option that does similar. Not everyone likes driving-based vacations.

      • The average EV battery is 1000 pounds. Even a tiny extension of 10% of the typical battery would be way too heavy for people to safely handle. I could handle 50 lbs if it was well designed but I don't know if most folks could. If they had 50 lb extension packs I would need to wrangle 20 of them to double my range.

        Dropping one would probably ruin it. I remember hearing about swappable battery packs long ago but nobody has figured out a way to make it happen yet. Between how expensive and fragile they are a
        • by dgatwood ( 11270 )

          The average EV battery is 1000 pounds. Even a tiny extension of 10% of the typical battery would be way too heavy for people to safely handle. I could handle 50 lbs if it was well designed but I don't know if most folks could. If they had 50 lb extension packs I would need to wrangle 20 of them to double my range.

          Dropping one would probably ruin it. I remember hearing about swappable battery packs long ago but nobody has figured out a way to make it happen yet. Between how expensive and fragile they are and how tough they are to swap I am doubtful anything like this is in the cards until we get some huge advances in battery tech.

          Tesla actually does something like this in the CyberTruck. The 50 kWh battery pack sits in the bed and weighs 600 pounds. It is not user-swappable, but Tesla can install or remove it. (I'm sure they'll charge you for the service in both directions.)

          • by Tablizer ( 95088 )

            typical battery would be way too heavy for people to safely handle

            Then market the car to gorillas. Solved!

          • by necro81 ( 917438 )

            Tesla actually does something like this in the CyberTruck. The 50 kWh battery pack sits in the bed and weighs 600 pounds.

            Only on paper. Tesla has a design, released computer renderings, and makes it available as part of a preorder. But has a single range extender pack been shipped yet? I'll tentatively keep that one in the same category as "full self driving" until demonstrated otherwise.

            • by dgatwood ( 11270 )

              Tesla actually does something like this in the CyberTruck. The 50 kWh battery pack sits in the bed and weighs 600 pounds.

              Only on paper. Tesla has a design, released computer renderings, and makes it available as part of a preorder. But has a single range extender pack been shipped yet? I'll tentatively keep that one in the same category as "full self driving" until demonstrated otherwise.

              That's fair. They're expected to actually become available later this year. But presumably they've built at least a few. :-D

        • by AvitarX ( 172628 )

          I'm sure there's more to worry about than just the weight too.

          Most of the batteries are actively cooled, which likely would mean a need to drain the battery somewhere and then refill it, and the seals between those 50lbs packs would need to be tight.

          I think Tesla very early had some swapping demos (or my brain is decrepit with age), but quietly stopped talking about it when batteries got bigger (as in energy stored), and the need for more protection for them became clear.

          The structural battery pack concept

        • by shilly ( 142940 )

          You're thinking of A Better Place, whose battery swap approach never took off. However, NIO has had some success with its approach much more recently.

      • For pickup trucks, why not just make it easy to add extra batteries in the pickup bed so those who plan or like long trips can add batteries if needed?

        It's not that easy. The battery system in an EV is a combination of batteries, cooling system, recharge system, and monitoring system. If you wanted to add a new battery pack in the bed you'd have to connect it to the regenerative recharge system and balance the charges among both battery packs. Cooling would need a separate cooling loop as the one in the main battery system is sized for that heat load. That means a separate heat exchanger in the bed of the truck.

        Recharging would take twice as long to g

    • by Xenx ( 2211586 )

      Rivian needs to learn how build efficient EV's, both in terms of building them cheaply and in terms of their mileage.

      I would agree on the price part, but Rivian is coming out with more economical models. As for the "fuel efficiency", it's hard to get a direct comparison. Combing multiple sources, the R1T and R1S are near the top of the list for efficiency in their class. I can find example SUVs that beat out the R1S but they're smaller, less powerful, and/or not AWD. I'm not saying I wouldn't want to see more efficient options, but it appears to be more a design balance and not an actual efficiency issue.

    • by chill ( 34294 )

      In other Rivian news [carscoops.com] (yesterday):

      Rivian has streamlined its manufacturing process by eliminating 100 steps from battery production, removing 52 pieces of equipment from the body shop, and cutting over 500 parts from the designs of the R1T and R1S.

    • by shilly ( 142940 )

      Out of interest, which companies do you have in mind when you say "high customer satisfaction is a barrier many other EV makers that can build relatively efficient EVs have yet to crack"?

      My sense is that a few legacy OEMs have built some duds, but most EV models are well-liked by their owners.

    • by AmiMoJo ( 196126 )

      Tesla's "full self driving" isn't viable. In fact it's a massive liability as people who paid for it 8 years ago start joining class action lawsuits and expecting their cars to get upgraded for free as promised. The basic premise of it working with only cameras is flawed, and Tesla will never release a working version that you can actually rely on to do what they claimed it would way back in 2016.

      Google's cars don't need to map every area in great detail. You may be confusing them with Nissan and Cadillac's

    • by hawk ( 1151 )

      Yeah, I hadn't even *heard* before that Rivian has somehow managed to have emissions problems on EVs, let alone at a level that would require VW's assistance to cheat their way out!

      hawk

  • I think Tesla's.... let's generously call it, "PR missteps"... in recent years have opened a window of opportunity for Rivian that seemed to be closed.

    To me the R1T is how the Cybertruck should have looked.

    • I won't go that far in terms of Cybertruck critique, although calling it divisive is fair (consistency!).

      Rivian has mad a big cost-cutting initiative and with this investment they really have some great opportunities.

    • Re:Stoked (Score:5, Informative)

      by ArchieBunker ( 132337 ) on Tuesday June 25, 2024 @05:48PM (#64578119)

      The Rivian also doesn't get totaled when it drives through water. https://electrek.co/2024/06/24... [electrek.co]

      26 miles on the odometer and the water level not even above the door frame. Apparently in a Cybertruck you have to enable the special water mode and wait 10 minutes while it pressurizes the battery pack, which lasts for 30 minutes.

    • Yeah thinking about it to me it would have been smarter to keep the Cybertruck more a limited run type vehichle. If you said "we're only making 10,000 of these" and charged like $150k they'd be an instant collectors item and then you release a more traditional truck as a mainstream offering. The first one I saw was "neat" but i've seen like 2 dozen of them now, it's goofiness is going from charming to just plain goofy.

      I really liked that concept design they originally showed that mimiced the look of the

  • ... are the wonderfully quiet Amazon delivery vans that whisper through my neighborhood.
    • by shilly ( 142940 )

      The electrification of the light commercial sector cannot come fast enough for me, for exactly this reason. Van engine noise is really horrible.

  • The R3 was a clear signal to VW that Rivian has what VW is lacking for the EV era: A new Golf ⦠and they designed a Audi A50/Polo successor.
  • https://www.msn.com/en-us/auto... [msn.com]

    VW has proven that they are clueless about software (and probably also about EVs).
    Investing in Rivian where they get software and EV expertise is a good move for them and gives Rivian needed cash.

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