Volkswagen Group (VW) and Rivian have announced a 50:50 joint venture (JV) where VW will invest $5 billion to create next-generation electrical architecture and next-gen software technology.
The partnership is anticipated to accelerate the development of software for Rivian and Volkswagen Group. It is expected to allow both companies to combine their complementary strengths and lower cost per vehicle by increasing scale and speeding up innovation globally.
Rivian’s in-market hardware design and integrated technology platform are expected to lay the foundation for future SDV development in the partnership.
In the short term, the JV is expected to enable Volkswagen Group to utilise Rivian’s existing electrical architecture and software platform. The partnership’s ambition is to accelerate Volkswagen Group’s SDV plans and transition to a pure zonal architecture. Each company will continue to separately operate their respective vehicle businesses.
RJ Scaringe, Founder and CEO of Rivian said:
“Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”
