NEW YORK, Nov 13, 2024 (BSS/AFP) - German automaker Volkswagen and US electric vehicle manufacturer Rivian aim to begin selling cars equipped with the technology developed from their joint venture by 2026, the companies said Tuesday.

The collaboration, focusing on automotive software and "electronic architecture" of vehicles, is based on an investment of up to $5.8 billion by Volkswagen in Rivian by 2027.

"The partnership with Rivian is the next logical step in our software strategy," Volkswagen Group CEO Oliver Blume said in a statement. "With its implementation, we will strengthen our global competitive and technological position."

The new Rivian model, the R2, is planned to launch in the first half of 2026, with the first Volkswagen models to carry technology from the joint venture expected in 2027, according to a statement.

Rivian founder and CEO RJ Scaringe said that the joint venture "marks an important step forward in helping transition the world to electric vehicles."

The collaboration aims "to reduce development costs and scale new technologies more quickly," the news release said.

Volkswagen had shared in late September that it was seeking to cut costs and was reckoning with significant challenges to its business.