Resumo:The firms will share EV technology as they face slowing demand and competition from Chinese rivals.
The two firms will share EV technology at a time of slowing global demand
Volkswagen Group (VW) and Tesla rival Rivian have launched a joint venture, with the German car giant increasing its investment in the partnership.
The two companies say the the deal is now worth $5.8bn (£4.55bn) - up from an initial pledge of $5bn by VW.
Shares in the US electric vehicle (EV) maker jumped more than 9% in after-hours trading following the announcement.
The joint venture provides loss-making Rivian with a crucial source of funding as it prepares for the launch next year of its R2 model - a sports utility vehicle (SUV) that is smaller and more affordable than its current offerings.
It also means VW will be able to use Rivians technology in its own range of vehicles.
The first VW models equipped with Rivian technology are expected to be available to customers as early as 2027.
By combining their complementary expertise, the two companies plan to reduce development costs and scale new technologies more quickly, the two companies said in a statement.
Under the plan, developers and software engineers from both firms will initially work side by side in California, while three other facilities in North America and Europe will be set up.
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