Rivian dropped a bombshell yesterday with its announcement of a $5 billion investment from Volkswagen. The two companies will work together on software development for electric vehicles, with VW fronting Rivian $1 billion right off the bat. An additional $4 billion will come later, but if you're like us, the news probably left you with a major question: What about Scout Motors?

It doesn't take a leap of logic to see parallels here between Scout and Rivian. Scout is developing an electric pickup and SUV, whereas Rivian already has a pickup and SUV. It's a curious development to say the least, but VW Head of Strategy and Finance Communications Christopher Hauss tells us all is proceeding as planned with Scout.

"Our commitment towards Scout has not changed at all," he said. "Clear focus is now on taking the next steps in our joint venture plans with Rivian."

To refresh your memory, in May 2022 VW announced it was reviving the American off-road nameplate as an EV. Teasers show an SUV and a truck, both of which will be built at a new manufacturing plant in South Carolina. Magna Steyr is an engineering partner, helping Scout develop a new platform that won't borrow anything from VW's MEB architecture.

Presumably, this also means Rivian bones aren't in the mix. But you can't deny the similarity between the two companies. Both are young—the R1T launched in late 2021 and Scout doesn't even have a prototype yet. Both currently feature just two vehicles, a pickup and an SUV. And both are grabbing billions of dollars from Volkswagen.

The VW/Rivian partnership will help Rivian bring other mass-market models into production, namely the recently announced R2 and R3. VW will get Rivian's experience in software and electrical architecture, areas where the German brand has struggled. Whether any of that expertise reaches Scout Motors remains to be seen, but we wouldn't be surprised if that was a factor behind VW's decision to invest.

"Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost," said VW Group CEO Oliver Blume. "We are also acting in the best interest of our strong brands, which will inspire with their iconic products."

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