Rivian jumps on Volkswagen's $5 billion 'vote of confidence' investment

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Rivian jumps on Volkswagen's $5 billion 'vote of confidence' investment
VolkswagenElectric VehiclesVote Of Confidence
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The investment will also bolster Rivian's depleting cash reserves, further its target of becoming profitable on a gross margin basis later this year and help...

FILE PHOTO: The Rivian name and logo are shown on one of their new electic SUV vehicles in California

The investment will also bolster Rivian's depleting cash reserves, further its target of becoming profitable on a gross margin basis later this year and help it compete better in a market dominated by Tesla. "Joining forces in this way may also help lower the cost-per-vehicle and bolster defences against the growing might of Chinese EV makers."The news, however, came as a blow to auto parts and software supplier Aptiv as brokerage Piper Sandler said the deal, which will provide Volkswagen with Rivian's electrical architecture and software platforms, highlights the reducing reliance on third-party software in vehicles.

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