Volkswagen Will Invest Up to $5 Billion in Rivian

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Volkswagen, the German automaker, said on Tuesday that it would invest up to $5 billion in Rivian, a maker of electric trucks that has struggled to turn a profit, and that the companies would cooperate on software for electric vehicles. The deal creates an unusual alliance between the world’s second-largest carmaker and an electric vehicle start-up that has strained to live up to investors’ expectations that it would achieve the kind of success that made Tesla the world’s most valuable automaker. If successful, the partnership would address weaknesses at both companies. It would provide Volkswagen with the software expertise that auto analysts say it sorely lacks. And Rivian, in addition to cash, would benefit from the manufacturing expertise of an automaker that produces nearly 10 million vehicles a year, putting it just behind Toyota Motor in the global auto industry. Volkswagen said it would initially invest $1 billion in Rivian, and over time increase that to as much as $5 billion. If regulators approve the transaction, Volkswagen could become a significant shareholder. The infusion represents a big vote of confidence in Rivian, which loses tens of thousands of dollars on each vehicle it sells.