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Four years ago VW said it was spending €73 billion electrifying and digitising its product range. Last year it said it would spend about another €125 billion by 2028.
So the world’s second-biggest car maker had committed to an outlay approaching €200 billion on electric cars by the time demand for them abruptly plateaued.
What to do? The die is cast. Going into reverse isn’t an option, so VW is doubling down with a $5.8 billion joint venture with Rivian, the Californian electric SUV maker.
The idea is for VW to impart engineering know-how and Rivian to share digitisation expertise – because, like Tesla, it has learned that what binds customers to the EV experience is the feeling of being in a roomy piece of consumer electronics in which you can spend your whole time looking at a screen.
Unlike Tesla, Rivian isn’t making money. The WSJ says it’s losing $39,000 on every vehicle it sells.
