Why Rivian And VW Both Need Each Other

After a staggeringly successful IPO, Rivian shares and market value have plummeted. With interest rates high and funding drying up, some analysts say the electric SUV and truck maker is potentially just a couple of programs away from bankruptcy. However, in 2024 it received a big shot in the arm—a $5 billion investment from German automaker, Volkswagen Group. VW, the second largest automaker in the world, has a lot to offer Rivian. But it needs something in return. CNBC examines exactly what that is and why it could be revolutionary for the auto industry.

Chapters:
00:00 - 01:05 Title card - Why VW and Rivian need each other
01:12 Chapter 1 - Bleeding Cash
04:32 Chapter 2 - Volkswagen
8:49 Chapter 3 - The secret sauce
11:49 Chapter 4 - Future

Producer: Robert Ferris
Editor: Evan Lee Miller
Animation: Christina Locopo
Senior Managing Producer: Tala Hadavi
Additional footage: Bentley, CARIAD, Ford, Getty Images, General Motors, Lamborghini, Mazda, Porsche, Rivian, Scout Motors, Stellantis, Volkswagen

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#EVs

Why Rivian And VW Both Need Each Other

[KiwiZama]

We all want Rivian to succeed. More competition is great for the consumer. Also, they make a hell of a car

[BetterSubstance]

Another great deep dive by CNBC. Could even argue that Volkswagen even needs this success more than Rivian at this point.

[NPAMike]

The Chinese do it, because most of them started out as software companies or battery makers. Then they decided to make cars. Then they were able to leverage their size to scale manufacturing and lower costs with readily available parts and in a market that supports it.

[hyrenaj]

If Rivian can translate their product into a midsize SUV for $50k they'd have a real winner.

[martymcfly]

VW itself is in dire financial straits. The only difference is, VW won't be allowed to go bankrupt.

[brodieobrien-pickering]

Maybe if they built cheap vehicles, instead of vehicles that require a small mortgage to buy, theyd be doing better

[Bryghtpath]

In 1998, Volkswagen acquired Lamborghini, saving the iconic brand from collapse. Fast forward to 2024, and now they’re playing savior for Rivian.

[JogBird]

they thought that the $100k+ ev SUV market was infinite

[PJWestfield]

Though I can't currently afford a Rivian, I am rooting for them. Their vehicles are stylish and they definitely aren't Teslas. I see them here in the suburbs of Indianapolis and I just dream of owning one.

[JT_]

A surprisingly well done presentation of the situation these two companies and the industry at large is going through.

[Marcho]

They need to hold each other’s bags 😂😂😂

[iluvhousemuzic]

This is great for both companies. I do see rivian becoming apart of VW group in the future. They are largely complementary with lots to gain. Even if scout and rivian are seen as competitors, they would both benefit from being a part of the same group for economies of scale

[TheHersonCastillo]

Here's an idealistically new concept: Build affordable mobility options. 😄

[Siethon]

At the very end he goes "somehow, China learned to produce a software defined electric vehicle with a 30+% cost advantage". It's pretty simple really - strong subsidies, strong cost advantage at obtaining the rare earth metals needed to produce batteries, and cheap skilled labor compared to most developed countries. There's a reason why China is called the "workshop of the world"

[rebeltheharem]

Wow. You mean to say that the market for a luxury SUV or Truck EV that isn't exactly ultra high end enough to warrant its price tag, but is more of an ultra niche upper middle class good has already reach market saturation and is financially struggling?
Who would have known that spending hundreds of billions on making a car that appeals to .01% of the truck/suv market, but costs twice as much as an ICE, would fail to make profits.

[Baoboi]

I really hope Rivian survives. They make a great product.

[imudevco]

Rivian was not one or two programs away from bankruptcy. Yes, making vehicles is a huge capex, but Rivian's cash gives it a huge advantage. VW's offer is just a bridge to calm investors down while Rivian gets to profitability, hopefully sooner. VW needs Rivian more than the other. VW is going to have to get out of China, trim down drastically and finally come down to reality of making EVs which by then would have been too late. Herbert Deiss was the guy who would have changed that but VW is not ready for the truth.

[bruh]

"China figured out how to do it"
Yeah, they also have been heavily subsidized by the government for the past decade, and rely on cheap Chinese labor at suppliers... But they didn't mention that part

[yalifemedia]

I have done a lot of things in my life however getting a VW in 2022 was the WORST decision. I suffer daily because of this decision. Software issues, Car making noises, Car deciding what it wants to do. Trust me they need to fix their current issues or shut down.

[globalismoblackman]

It's more of a win for Rivian rather than Volkswagen group.