- VW Group and Rivian collaborate on electrical structure and software program growth
- First Rivian to make use of collectively developed programs might be R2 due in 2026
- First VW Group fashions will use the the programs from 2027
Volkswagen Group has determined to deepen its ties with U.S. electrical car startup Rivian, with the 2 corporations saying on Tuesday elevated funding for his or her beforehand introduced Rivian and VW Group Know-how three way partnership.
The three way partnership was first introduced in June with an preliminary funding of $5 billion, with the funding to be equipped by VW Group over a interval of years and Rivian in return delivering its experience in electrical structure and software program growth.
Rivian CEO RJ Scaringe (left) and Volkswagen Group CEO Oliver Blume
On Tuesday, VW Group and Rivian introduced the funding could be elevated to $5.8 billion. The extra funding is the results of VW Group pulling forward some potential future capital and altering the unique deal construction, the businesses mentioned.
Presently, $1.3 billion is to be spent on software program growth, an extra $3.5 billion is for VW Group to buy shares in Rivian, and the remaining $1 billion is earmarked for a possible mortgage by VW Group to Rivian.
Rivian and Volkswagen Group electrical structure and software program stack
The three way partnership, which is predicted to start out operations on Nov. 13, has been tasked with growing and supplying electrical structure and software program programs to each corporations, with options like community {hardware} and software program stacks that allow automobiles to be up to date over the air for his or her full life cycle talked about throughout an investor briefing.
The primary car to make use of the collectively developed programs was confirmed as Rivian’s R2 compact crossover due in 2026. VW Group mentioned some Volkswagen fashions will seemingly be its first fashions to make use of the brand new programs, adopted by fashions from Audi, and VW Group’s new Scout EV model. Through the investor briefing, VW Group CEO Oliver Blume mentioned some sports activities automobiles might additionally use the programs, with out offering additional particulars.
Scout Terra and Traveler ideas
The three way partnership’s preliminary base might be in Silicon Valley and make use of round 1,000 engineers. Three extra websites spanning the U.S. and Europe are deliberate for the close to future.
Each corporations are open to additional collaboration down the highway in areas comparable to batteries, entire car platforms, and joint manufacturing, however mentioned it will must be along with the introduced three way partnership deal.
