Volkswagen to Invest Up to $5 Billion Into EV Maker Rivian

Volkswagen VOW3 -0.14%decrease; red down pointing triangle Group is investing $1 billion in electric-pickup maker Rivian Automotive RIVN 23.24%increase; green up pointing triangle, with plans to spend up to $5 billion as part of a software-development partnership.

The deal, disclosed Tuesday, should provide a lift for the balance sheet of the loss-making startup and help lower the cost of Rivian’s next generation of vehicles. For VW, the deal is aimed at bolstering its software unit, which has struggled with quality issues.

Source: WSJ