VW shares slip on plan to spend up to $5 billion in Rivian deal

Group 1 - Volkswagen announced a joint venture with Rivian Automotive to develop vehicle software, involving an investment of up to $5 billion [1] - The deal includes a $1 billion convertible bond investment into Rivian, another $1 billion to establish the venture, and up to $2 billion in equity investments into Rivian [1] - Following the announcement, Rivian's stock surged by 50% in after-hours trading, while Volkswagen's preference shares fell by 2% in early trading [1] Group 2 - Analysts from Citi support Volkswagen's new partnership approach to address legacy technology issues, suggesting that earlier partnerships could have saved billions in R&D spending [2] - JPMorgan analysts anticipate that Volkswagen will utilize Rivian's technology in its Atlas SUV and Scout pickup truck [2] - The investment in Rivian is seen as part of a broader trend where German companies acquire U.S. firms at peak valuations, often leading to significant write-offs [3]