Rivian says no plans to produce vehicles with VW after reports on early talks

Rivian, the American electric vehicle manufacturer, has stated on Tuesday to address recent speculation regarding its partnership with Volkswagen. The company firmly stated that it has no intentions of engaging in vehicle production with the German automaker, despite a media report suggesting that discussions were underway to expand their recently announced collaboration beyond software development.

This clarification from Rivian came in response to an article published by the German newspaper Handelsblatt. The report, citing unnamed sources familiar with the matter, had suggested that the two companies were in preliminary talks to broaden their partnership. One of the potential avenues mentioned in the report was the possibility of manufacturing Rivian's upcoming smaller and more affordable R2 SUVs at Volkswagen's new production facility currently under construction in South Carolina.

A spokesperson for Rivian emphatically denied these claims in an email communication with Reuters. The company representative reiterated that Rivian has no plans to engage in joint vehicle production with Volkswagen Group. This statement effectively puts to rest any speculation about potential manufacturing collaborations between the two automakers.

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In light of this news, Rivian's stock experienced a modest decline of 1.5 per cent in after-hours trading, reflecting investor reaction to the clarification.

When approached for comment on the Handelsblatt report, Volkswagen declined to provide any specific response. Instead, the German automaker emphasized that its primary focus remains on the recently announced joint venture with Rivian.

Rivian also took the opportunity to reaffirm its existing production strategy for the R2 model. The company spokesperson confirmed that there have been no changes to Rivian's plans regarding the manufacture of the R2 vehicle. The original roadmap, which involves initiating production at the company's manufacturing facility in Normal, Illinois, followed by production at a planned plant in Georgia, remains intact.

It's worth noting that just last week, Rivian and Volkswagen announced a significant partnership that involves Volkswagen investing up to USD 5 billion in the American EV startup. This collaboration is centred around sharing electrical architecture and software technologies.

For Rivian, this deal represents a substantial boost, particularly in the context of a slowdown in electric vehicle demand. On Volkswagen's side, the joint venture provides access to crucial EV technology that traditional automakers have found challenging to develop independently.

Regarding Volkswagen's plans for its South Carolina plant, the German automaker has previously stated its intention to produce Scout-branded electric SUVs and pickups at this facility starting in 2026. When contacted about the possibility of Rivian vehicle production at the plant, a spokesperson for Scout Motors, which is overseeing the Scout brand revival, stated unequivocally, "We have not had any conversations about producing Rivian vehicles."

This series of statements from both Rivian and Volkswagen serves to clarify the nature and extent of their partnership, dispelling rumours of expanded collaboration in vehicle production while reaffirming their commitment to their existing joint venture in software and electrical architecture development.