VW taps Rivian in $5B EV deal and the fight over Fisker’s assets | TechCrunch

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Am I the only one whose head is spinning from Transpo news this week? As a reminder, it’s only Thursday morning. Let’s get started!

Oh wait, before we do that, a housekeeping item: We won’t have a newsletter next week due to the July 4th holiday. See you on July 11th!

a little bird

A little bird extended its hand and told us that cruise 35 employees were recently laid off. Cruise confirmed the cuts and added some important context. These were described as regular role eliminations, not layoffs – the latter is usually done for financial reasons. And yes, we know this is a small cut (just 1% of their workforce) 24% layoff round late last year. Still, we’re keeping an eye on all the action on the cruise.

Separately, Cruise announced a staff reorganization that will bring the company’s security functions under Chief Security Officer Steve Kenner and integrate two teams (customer success and remote support). According to the company, this reorganization is part of the company’s ongoing investment in security.

Do you have a suggestion for us? Email Kirsten Korosec [email protected] O’Kane [email protected] or Rebecca Bellan at [email protected], or see again these instructions Click here to learn how to contact us via encrypted messaging apps or SecureDrop.

deal!

I’m going to put Rivian,Volkswagen Group One of the things I did not expect to see in 2024 is this deal. A very big deal And that, too, is a curious thing.

This is what we know so far. The deal should give VW access to Rivian’s existing electrical architecture and software platform. Meanwhile, Rivian will get some of VW’s lucrative cash and manufacturing expertise that will likely help the EV company reduce its costs.

The deal is expected to bring $5 billion to Rivian’s coffers. But initially, VW Group will invest $1 billion in Rivian through an unsecured convertible note that will convert into Rivian’s common stock once certain regulatory approvals are received. This is expected to happen in the fourth quarter of this year. VW Group will buy another $1 billion of Rivian’s common stock in 2025 and 2026. The remaining $2 billion will go to the joint venture, which will be split between the initial investment and debt due in 2026.

The joint venture will be a 50-50 partnership, with co-CEOs reporting to both Rivian and Volkswagen Group. Rivian will share its electrical architecture expertise with Volkswagen and is expected to license existing intellectual property rights to the joint venture.

There’s a lot to learn here, so stay tuned as we tell this story.

Other deals that caught my attention…

Ather FuelAn e-fuel startup working on fuel production for aviation and maritime shipping, raised $30.4 million According to a public filing, this was an investment of $34.3 million.

BitsensingA South Korea-based startup developing 4D imaging radar, raised $25 million In the Series B round.

fetcher, A startup founded in 2019 that provides infrastructure for dynamic pricing systems used by airlines, raised $90 million In a Series B funding round led by Battery Ventures.

GetirThe food delivery startup will undergo a restructuring that involves Abu Dhabi wealth fund Mubadala Investment Company $250 million investment The company has acquired majority control of its Turkish grocery operations, the Financial Times reports.

SkyCellA Swiss startup that developed hardware and software for transporting pharmaceuticals, raised $116 million in a Series D round. SkyCell is now valued at $635 million, the company told TechCrunch.

Wisk AeroA subsidiary of Boeing, Verocell acquiredA software verification and validation company that has been serving the aerospace industry for over 25 years. Terms were not disclosed.

Notable reads and other interesting tidbits

autonomous vehicles

If I were a woman to bet, I’d bet that cruise It is going to be seen again on the streets of San Francisco by the end of 2024. Why? Some developments are pointing towards this.

For one thing, Cruz agreed. Pay a $112,500 fine was fined for failing to fully disclose information about an accident involving its robotaxi to California regulators last year. And it Mark WhittenA video game veteran who was most recently CTO at Unity, as its CEO,

Project 3 MobilityCroatia-based autonomous vehicle startup Rimac Groupannounced a new name, Verne — as in Jules Verne — and some details about the venture. Verne was founded by two close friends from Mate Rimac and the Rimac Group, Marko Pejkovic, now CEO of Verne, and Adriano Mudri, designer of the Nevera and chief design officer at Verne. The plan is to launch an electric autonomous two-seater vehicle designed for urban environments and equipped with Mobileye technology by 2026, starting in Zagreb, Croatia, where the Rimac Group is based.

Uber Freight And Aurora Innovations Announced a multi-year collaboration that will see Aurora’s autonomous driving technology available on the Uber Freight network until 2030. Read more Contact us to get detailed information about this deal.

Waymo Is Waiting list removed The San Francisco Robotaxi service allows anyone to download an app and then instantly summon one of its robotaxi in San Francisco. Nearly 300,000 people have signed up for the waiting list since last year.

Electric vehicles, charging and batteries

Bankruptcy proceedings Fisker This year is going to be just as eventful for EV startups as the last one. The most surprising thing is that it seems that Fisker Was facing a “potential financial crisis” Early last August. For reference, that’s the same month that Fisker held a “Product Vision Day” event to promote several new models in development, including a low-cost EV and an electric pickup truck.

Meanwhile, a Battle over Fisker’s estate has already been accused, with a lawyer claiming the startup is liquidating assets “outside of court oversight.” At issue is the relationship between Fisker and its largest secured lender, Heights Capital ManagementThe financial services company is a subsidiary of Susquehanna International Group.

Software, apps and in-car technology

cdkwhich makes customer management software for car dealerships and auto shops to handle their customer and vehicle records, The damage is still being assessed The problem is causing havoc on 15,000 car dealerships and auto shops across the US that rely on the company’s software. The company says it will take “several days” to resolve it.

Stellantis’ AI chief Berta Rodriguez-Hervas has left the automaker. Automotive News reported,

This Week’s Wheels

I didn’t get a chance to drive this particular vehicle, but wow, I have to share what I saw up close. I’m talking Bugatti TourbillonIt is the successor to the Bugatti Chiron and the first vehicle to come after the merger with Rimac.

The Bugatti Tourbillon is special for many reasons – and not just because it has a base price of 3.8 million euros or that only 250 will be made. I believe this Bugatti represents luxury in the future digital age.

There are no big screens inside, a modern detail that seems to be a necessity in every new car nowadays. Instead, the highlight of the plush interior is the instrument cluster, which was designed and built with the help of Swiss watchmakers. The instrument cluster, which has over 600 parts and includes gemstones such as sapphires and rubies, is fixed in place when the steering wheel is turned around.

Then there’s the drivetrain. Bugatti removed its famous quad-turbo 8.0 W16 and instead built a naturally aspirated V16 engine and electric powertrain with three electric motors. The vehicle has a 25 kilowatt-hour battery pack that provides a range of about 60 to 70 kilometers (37 to 43 miles). Mate Rimac, founder and CEO of the Rimac Group, said that it is “all-electric range if you need it, especially to make the car future-proof if, in some regions, you won’t be able to drive with a combustion engine at all.”

So forget the screens and apps. You won’t find them here. Instead, innovation and technology look like art.