Automakers Rivian and Volkswagen Group have finalized a multibillion-dollar joint venture to develop software for cars. This will allow the German automotive giant to use Rivian’s technological developments in the coming years. Volkswagen will invest up to $5.8 billion in Rivian by 2027, TechCrunch reports.
The new joint venture will officially begin operations on November 13, 2024, as an independent company. Rivian and the Volkswagen Group claim that the joint venture will reduce development costs and help scale new technologies faster.
The joint venture will be headed by Rivian’s Head of Software, Wasim Bensaid, and Volkswagen Group’s Chief Technical Officer, Carsten Helbing. The team will include developers and software engineers from both companies.
The goal of the new company will be to create “software-defined cars”. That is, cars that can be upgraded with software updates.
VW Group CEO Oliver Blum said on Tuesday that the company’s internal software development unit Cariad will continue to play a “central role” in the Volkswagen Group’s global software strategy. This unit will support the software already released in modern cars for at least another 10 years. Cariad is also responsible for software management, which includes autonomous driving, data management, and cloud services.
The newly formed joint team plans to use Rivian’s existing electrical architecture and software technology stack. This will ensure the launch of the Rivian R2 mid-size SUV in the first half of 2026 and support the launch of the first Volkswagen Group models in 2027, the companies said.
Wassim Bensaid describes the joint venture as an opportunity for Rivian to offer its software to several brands, including VW subsidiary Scout. He said that each brand that uses the joint venture’s software “will continue to have its own identity” and its own characteristics.
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