Volkswagen and Rivian officially team up on £4.5bn joint venture
By sharing development costs with Rivian, the Volkswagen Group is hoping to lower costs while improving its EVs
The Volkswagen Group and American EV start-up Rivian announced last year that they’ll work together to develop next-generation software technology for future EVs – and now Volkswagen brand boss Thomas Schäfer has revealed what this will mean for upcoming models.
Addressing what Rivian and VW’s technology development will cover, Schäfer said: “The body systems, the drivetrains, the infotainment… all electronics in the vehicle.”
As for the first cars destined to use the technology, Schäfer stated: “It will start with Porsche and Audi and maybe a few American vehicles then [we’ll] bring that into our EVs and SSP [Scalable Systems Platform] cars going forward.”
The “American vehicles” is thought to reference VW’s new Scout Motors US brand.
VW says its venture with Rivian will bring “best-in-class software technology for both companies’ future electric vehicles” thanks to “Rivian’s industry-leading software” and “Volkswagen Group’s significant global scale”.
As part of the deal, the Group is committing to invest a total of $5.8billion (£4.5billion) into Rivian by 2027, to gain access to the firm’s advanced EV platform tech. Then, in the second half of this decade, we can expect to see new Rivian and Volkswagen Group cars or vans based on an all-new Software Defined Vehicle (SDV) platform created by the joint venture.
As well as accelerating software and platform development, the brands also hope that pooling their resources can lower vehicle-production costs at a time when the flow of lower-priced electric cars from China into western markets is increasing.
While Rivian has been focused on electric pick-up trucks and SUVs, Volkswagen says the partnership will cover “all relevant vehicle segments, including subcompact cars”. Eyeing up Rivian’s electrical architecture and software, Volkswagen says it expects to launch its first models from the venture in 2027 – sharing technology with the upcoming Rivian R2 SUV due in 2026. This was revealed earlier this year, showcasing Rivian’s all-new platform.
Volkswagen says it will evolve Rivian’s modular EV architecture found in the R2 (which incorporates the battery into the platform and offers more than 340 miles of range) for its next-generation electric cars. These will be able to receive regular over-the-air updates, which VW says will increase “the added value throughout the entire lifecycle of the vehicle”.
While a working VW prototype with a production body has already been retro-fitted with hardware from Rivian, platform-sharing – as we’ve seen with Ford’s Capri and Explorer EVs making use of VW’s MEB architecture – won’t be on the cards.
What will the deal mean for VW Group infotainment systems?
Although infotainment will be a part of the new central computing system jointly developed by the two firms, Schäfer did say VW’s latest infotainment software in its electric vehicles was “state of the art” and that “infotainment wasn’t the decision driver for the future”.
Speaking about the deal last year, VW Group CEO Oliver Blume said: “The partnership with Rivian is the next logical step in our software strategy. With its implementation, we will strengthen our global competitive and technological position. We have a clear plan to offer our customers the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches, and a competitive cost base driven by synergies.”
During the original announcement in 2024, RJ Scaringe, founder and CEO of Rivian, said: “Today’s finalisation of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles. We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future. Rivian will continue to stay focused on creating best-in-class products and services that benefit our customers, helping to drive EV adoption.”
Rivian was founded in 2009 but revealed its first production car as recently as 2017. The R1S SUV and closely related R1T pick-up truck are on sale direct to US customers, and these have been joined more recently by the EDV panel van, more than 10,000 of which are now on Amazon’s delivery fleet.
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