Volkswagen and Rivian have completed all the finishing touches on their new $5.8 billion joint venture, which will officially launch on November 13, the companies announced today.

Last June, VW said it would invest $5 billion in Rivian as part of a new joint venture focused on developing a new electric architecture and vehicle software for future models, including subcompact cars, the first of which is scheduled for 2027. Now those investments have grown to $5.8 billion.

The new joint venture, colloquially named ‘Rivian and VW Group Technology, LLC’, will be led by Rivian software chief Wassym Bensaid and VW Group chief technology engineer Carsten Helbing. The teams will initially be based in Palo Alto, California, with three additional locations in development in North America and Europe. Developers and engineers from both companies will fill the ranks of the new venture.

Now that the deal has closed, Rivian will receive an initial $1 billion loan from VW, followed by $1.3 billion in shares in Rivian, and another $3.5 billion over the next few years, Volkswagen Group CEO Oliver Blume said , in a phone call with reporters on Tuesday.

The technology resulting from the joint venture will form the basis for vehicles from both companies, from Rivian’s more affordable R2 vehicle, which will enter production in 2026, to a variety of VW Group models including Audi, Porsche, Scout and VW.

“The positive aspect is that we will be scalable, from the very small segment to luxury cars (and) sports cars,” Blume said. “The electronic architecture… will be scalable and usable across a wide range of vehicles.”

At the time, the new venture was seen as a big win for Rivian, which has lost more than $1 billion a quarter over the past year and is still struggling to find its financial footing since going public in 2021. The company recently said it expected this year to $2.88 billion in adjusted earnings losses, compared to the previous expectation of $2.7 billion in losses. And there have been several layoffs in the past two years.

Meanwhile, VW has been waging its own battle around electric vehicles. The company’s plug-in models are selling well, but its market share in North America is shrinking. Financial problems began to reach their peak this year, forcing the country to close at least three of its German factories and downsize those that remain. And the software is plagued with bugs and customer complaints.

The new venture is promising for both companies: VW will gain access to Rivian’s software-first approach to car manufacturing, which should help the company better compete in the race to develop more software-defined vehicles that can receive updates over the air; and Rivian will receive a much-needed financial lifeline that will help the country survive the uncertain economic environment going forward.

Rivian CEO RJ Scaringe has said the capital will help the company ramp up production of the R2 at its existing factory in Normal, Illinois, as well as a mid-range EV platform at a factory in Georgia, where Rivian previously halted construction . this year.

Scaringe would not say when construction on the Georgia plant would begin, but confirmed that it is a “core part of Rivian’s long-term manufacturing topology and long-term manufacturing strategy.”

“This partnership and deal secures the capital to ensure that we can not only guide Rivian through the launch of R2 in Normal, but also secure the launch and growth of R2 in our Georgia facility and provide free cash flow that positive for us as a business,” Scaringe added.

There were also indications that the new partnership would include Scout Motors, VW’s adventure brand that recently launched a new electric truck and SUV. Bensaid had said Scout’s software would be a product of the VW-Rivian joint venture. And today the companies confirmed that Scout would be among the brands to benefit from the new technology.

“Great vehicles require great software,” Scout CEO Scott Keogh said in a statement following the media call with Rivian and VW. “It makes perfect sense to combine American manufacturing and technology to deliver Scout vehicles that customers want to own and love. This next-generation software-defined vehicle architecture will beautifully complement our Scout Community UX, allowing us to provide our customers with the tactile control and connectivity they desire, with the responsiveness and user-friendly interface they demand.”