Rivian Denies Plans for Vehicle Production with Volkswagen

On Tuesday, Rivian said it had no plans to produce vehicles with Volkswagen after a media report claimed the U.S. electric vehicle maker was in early talks with the German automaker to extend a recent partnership beyond software. Rivian shares dipped 1.5% in extended trade following the news.

Report Details and Company Responses:

German newspaper Handelsblatt reported on Tuesday, citing sources familiar with the matter, that an extended partnership might include producing Rivian’s smaller and less expensive R2 SUVs at VW’s currently under-construction South Carolina plant.

“There are no plans for vehicle production with Volkswagen Group,” a Rivian spokesperson said in an email to Reuters. Volkswagen declined to comment on the media report and reiterated its clear focus on the joint venture (JV).

Rivian Production Plans:

The Rivian spokesperson confirmed that the company has not changed its plans to start producing the R2 at its manufacturing facility in Normal, Illinois, followed by production at a planned Georgia plant.

The companies announced last week that VW would invest up to $5 billion in Rivian as part of a deal to share electrical architecture and software. This investment is significant for Rivian amid slowing EV demand, while for VW, the JV provides much-needed EV technology that traditional automakers have struggled to build.

VW’s Production Plans:

VW plans to produce its Scout-branded electric SUVs and pickups at the South Carolina plant from 2026. A spokesperson for Scout Motors said, “We have not had any conversations about producing Rivian vehicles.”