Future Volkswagen EVs Will Adopt Rivian Technology
Volkswagen, one of the world’s largest automotive groups producing millions of vehicles annually, will invest $5 billion in Rivian between now and 2026. The German auto giant and the U.S.-based startup electric truck manufacturer will form a joint venture to develop next-generation electrical architectures and software that will be used by both companies. The deal Rivian secure funding to produce its upcoming R2 and R3 crossover and hatchback models, but also gives Volkswagen access to Rivian’s excellent software platform, accelerating the development of its next-generation EVs.
Partnering with Rivian came after years of delays from Volkswagen Group’s in-house software division, which was called Cariad. Created to develop software for all of the group’s brands, including Volkswagen, Audi, Porsche, Bentley, Lamborghini, and others, development delays at Cariad delayed the launches of the new Audi Q6 e-tron and Porsche Macan EV, among others. Meanwhile, Rivian’s “software-defined vehicle” (SDV) software won praise for the integration of all its features, its responsiveness, and easy-to-use interface.
How Will Volkswagen’s EVs Benefit from Rivian Expertise?
The Volkswagen Group’s EVs – from the ID. 4 SUV to the ID. Buzz van to the Porsche Taycan and Macan EV and the Audi Q4, Q6, and Q8 e-tron – offer a wide range of choices at many price points. They drive really well and offer all the features you would expect from modern, tech-forward vehicles, but they aren’t as efficient as competitive vehicles from EV startup brands, and the user interfaces for their infotainment and climate-control systems have been criticized for poor responsiveness and ease-of-use. The new partnership with Rivian should improve all of these characteristics in future model updates.
Indeed, Rivian’s state-of-the-art technology platform, which recently received a comprehensive update for the revised 2025 R1S and R1T models, will form the basis for future projects for the joint venture between Volkswagen and Rivian. The American EV maker will also share its expertise in electric vehicle architectures, meaning that Volkswagen can use Rivian’s existing software-defined vehicle tech in future EVs from its many brands.
A Win-Win Situation for Consumers?
“We’re very excited to be partnering with Volkswagen Group,” said Rivian CEO RJ Scaringe. “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.”
“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture,” said Volkswagen Group CEO Oliver Blume. “Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our strong brands…the partnership fits seamlessly with our existing software strategy.”
When Will Volkswagen EVs Get Rivian Software?
It's not yet clear what the first Volkswagen, Audi, Porsche, Bentley, Lamborghini, or other VW Group models will receive a Rivian software infusion. However, the two companies have said that they have already worked together to ensure that Rivian’s EV architecture and software will work in the electric vehicles the company’s brands are already producing – meaning that we could see improved software and efficiency sooner rather than later.
The joint venture agreement between Volkswagen Group and Rivian will be completed by the end of 2024. The group will initially commit $1 billion to Rivian by December, with two additional $1 billion installments in 2025, and another $2 billion in 2026.
