Could new automotive technology from an automotive giant with a troubled electric vehicle system and a startup struggling to finance its second phase attract other companies? Rivian and Volkswagen want to find out.
Rivian and Volkswagen Group Technologies Officially launched on November 13, it was the result of a $5.8 billion joint venture between the two companies that was first announced as a software deal in June. The goal is to have the electrical architecture and software for future generations of EV models from both companies. This paves the way for both smaller, less expensive VWs and cheaper Rivian models. It also benefits VW’s off-road offshoot Scout Motors, which is expected to start selling Rivian-like SUVs and pickup trucks with EV-only versions and gas-assisted range-extended EVs by 2028.
The deal also connects Rivian to a larger network of suppliers for various parts of the VW Group. Rivian aims to reduce production costs for the existing R1S SUV and R1T pickup truck plant in georgia To complement its existing Illinois facility, and to offer midsize r2 suv As part of its plan to move into more mainstream vehicle segments and expand into Europe next year.
“The joint venture is rapidly developing architectures for our future software-defined vehicles,” VW Group CEO Oliver Blume said in a statement Wednesday. “Every step towards achieving our ambitious goals is being executed with determination and clear focus. Through close collaboration with our brands, a technological foundation has been built in just twelve months that will enable a new digital driving experience at accessible prices for our customers.”
However, to further the investment, the joint venture’s technology may be made available to other automakers. Rivian chief software officer Wassim Bensaid said the platform being developed for both automakers could work for more companies. InsideEVS,
While the electrical architecture will be powerful enough for the next generation of EVs, which are expected to use more 800-volt systems that will charge more quickly, it will also be able to support more advanced driver assistance systems like Rivian’s Enhanced Driver Assist and future hands-free driving systems like General Motors’ SuperCruise. Licensing the technology to other automakers planning more powerful gas-electric hybrid and faster-charging battery electric vehicles — both of which could make more extensive use of cameras, lidar and other technologies — could be another revenue source for Rivian and VW, according to venture officials.
Rivian and CEO RJ Scaringe have not been exactly secretive about the company’s weak financial condition in the past. Canceling the Federal EV Tax Credit Became official in late September. it 600 employees were fired from their jobs In October, the third round in 2025, and while deliveries in the third quarter of the year were up by 30%, the annual forecast was reduced to 41,000 vehicles in 2025.
“With the changing context of operations, we have had to rethink how we are scaling our go-to-market operations,” Scaringe wrote in an email obtained by the company. reuters Last month.
And VW Group is hardly short of cash, especially after the investment with Rivian. Tariffs, declining EV sales in China and elsewhere, and investments in electric cars and AI that have not yet paid off have contributed to One-third decline in operating profit Plan to build in the first half of 2025 American factory for Audi Avoiding new tariffs on its most popular models made in Germany, Mexico and other countries also remains on the wish list, while a multi-billion-dollar investment package has also been reevaluated after another Audi plant in Belgium closed in February.