Volkswagen will make investments as much as $5bn (£3.9bn) in US electrical automobile maker Rivian as producers rethink their methods amid unsure demand.
The German automobile producer mentioned it is going to initially make investments $1bn within the electrical truck maker as a part of a three way partnership that can give it entry to the start-up’s expertise.
It is going to put one other $4bn into the Tesla rival by 2026. Rivian’s shares have jumped 50pc in premarket buying and selling within the US.
It’s the second shock lifeline for the US carmaker in a little bit over a month after the Biden administration imposed tariffs on China’s electrical automobiles, which the White Home mentioned have been gaining unfair benefit from state subsidies.
It comes as the electrical automobile sector faces challenges from weakening demand and a commerce struggle which has additionally been the European Union say it is going to impose tariffs on Chinese language automobiles.
The German automotive business has been against the EU plan amid fears China might impose counter-tariffs to harm producers comparable to BMW and Daimler.
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