Volkswagen AG resolves on investment by Volkswagen of initially 1 billion USD in Rivian Automotive, Inc., and intends to establish a joint venture

Volkswagen AG resolves on funding by Volkswagen of initially 1 billion USD in Rivian Automotive, Inc., and intends to ascertain a three way partnership with Rivian Automotive, Inc., within the space of E/E structure. Complete investments from Volkswagen in Rivian Automotive, Inc., and the three way partnership may develop to as much as 5 billion USD till 2026.

The Administration Board of Volkswagen AG immediately resolved with the approval of the Supervisory Board of Volkswagen AG that Volkswagen will enter right into a Convertible Promissory Be aware Buy Settlement with Rivian Automotive, Inc. Underneath the phrases of this settlement, Volkswagen will grant Rivian Automotive, Inc., a convertible notice within the quantity of 1 billion USD. The notice will convert right into a direct shareholding of Volkswagen in Rivian Automotive, Inc., upon the receipt of the required regulatory approvals, however not earlier than 1 December 2024. The dimensions of the shareholding is decided in accordance with sure common share costs of the shares of Rivian Automotive, Inc., for one half of the fairness curiosity as of the time of the conclusion of the Convertible Promissory Be aware Buy Settlement and for the opposite half of the fairness curiosity as of the conversion day.

As well as, Volkswagen and Rivian Automotive, Inc., intend to ascertain a three way partnership for the aim of the joint creation of subsequent technology electrical/digital structure (so-called E/E-architecture) for electrical autos. Volkswagen and Rivian Automotive, Inc., shall every maintain a 50 % stake within the three way partnership, and it shall be equally managed. Upon profitable implementation of the three way partnership, Volkswagen would obtain rapid entry to Rivian Automotive’s present E/Earchitecture expertise for utilizing it in its electrical autos. The precise institution of the three way partnership depends upon a sequence of various parameters, specifically, the ultimate outcomes of the additional overview of the technical feasibility of the mixing of the E/E-architecture in autos of Volkswagen, the additional negotiations between the events in addition to regulatory approvals. Towards this background, a ultimate choice on the institution of the three way partnership has not been made but.

In case the three way partnership could be established efficiently, Volkswagen intends to make additional investments in shares of Rivian Automotive, Inc., or within the three way partnership within the whole quantity of 4 billion USD. The extra funding in shares of Rivian Automotive, Inc., could be made in two tranches of 1 billion USD every in 2025 and 2026 and could be contingent on Rivian Automotive, Inc., and the three way partnership attaining sure milestones. With respect to the three way partnership Volkswagen would supply a fee within the quantity of 1 billion USD upon basis of the three way partnership in 2024 and grant a mortgage within the quantity of 1 billion USD in 2026. If the three way partnership shall be efficiently applied and sure additional milestones are achieved, the full funding of Volkswagen in shares in Rivian Automotive, Inc., in addition to in fairness and debt within the three way partnership would combination in a complete quantity of 5 billion USD by 2026; part of which within the quantity of two billion USD could be paid out nonetheless in fiscal 12 months 2024.

The introduced transaction may lead to an unplanned money outflow of as much as 2 billion EUR within the present fiscal 12 months. Subsequently, Volkswagen AG is updating its monetary forecast for fiscal 12 months 2024 as follows: Within the Automotive Division, Volkswagen AG now expects web money move to vary between 2.5 billion EUR and 4.5 billion EUR (beforehand: 4.5 billion EUR to six.5 billion EUR) and web liquidity between 37 EUR billion and 39 billion EUR.

Lars Korinth
Head of Group Investor Relations