VW-Rivian Joint Venture May Sell EV Tech to Other Carmakers
RV Tech Reports Progress on Electrical, Software Platform
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Volkswagen AG and Rivian Automotive Inc. have ambitions of selling the electric vehicle technology theyre developing together to other carmakers in the future.
Their joint venture, known as RV Tech, said it has made solid progress on delivering the EV electrical and software platform that Volkswagen needs to compete with Tesla Inc. and Chinese rivals. The JV is focused on delivering models for Rivian and VW but is keeping communication open with third parties about the scalability of its platforms.
Were solving a problem for the larger automotive industry, Wassym Bensaid, Rivians software chief and RV Tech co-chair, told journalists at an event in Palo Alto, Calif., on Nov. 12. That could become an opportunity for others as well, he said.
Volkswagen is grappling with tariffs in the U.S., shrinking deliveries in China and muted demand in Europe. As part of its push to cut costs and bolster sales, its turning to Rivian for the kind of software and EV technology its initial battery-powered models were missing. The automaker is investing as much as $5.8 billion into the alliance, making it one of CEO Oliver Blumes biggest strategic bets.
The platform is designed to be scalable across vehicle sizes and segments in Western markets. The earnings potential from licensing the technology is a very different ballgame, Bensaid said, and a very different margin profile from a business standpoint than making cars.
The venture plans to begin testing the system in winter conditions on Audi, VW and Scout models starting in the first quarter of 2026.
Theres no Rivian versus VW versus Audi, Bensaid said. Its Rivian and Audi and VW and potentially in the future other OEMs because of the breadth and scalability of the technology solution that were building.
Like Tesla, BYD Co. and Xiaomi Corp., RV Tech is using zonal architecture, which requires fewer individual controllers to oversee a wider range of functions in the cars front, central and rear sections. This reduces costs by cutting the number of computers and wiring needed.
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Volkswagen has licensed its technology to other carmakers in the past, with Ford Motor Co. and Mahindra & Mahindra using the German carmakers first-generation platform for their own electric models.
The partners formed a joint venture one year ago that brings together software developers and engineers from both companies. Theyre working with Rivians centralized electronics layout with fewer computing units thats meant to help Volkswagen simplify development and cut costs. For loss-making Rivian, the investment is a financial lifeline as manufacturers rethink strategies in a slowing EV market.
While the JV is prioritizing the ramp-up and delivery of the underpinnings for electric models, there are parallels that would allow the technology to be used for combustion-engine cars as well, JV co-chair Carsten Helbing said.
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The first car to get the new technology will be Rivians R2 sport utility vehicle, out early next year. VWs compact EV, called ID. EVERY1, expected to cost around 20,000 euros (about $23,000), will follow in 2027, with rugged vehicles from the Scout brand due after that. Volkswagen has a similar partnership with Xpeng Inc. for the Chinese market.
Volkswagens earlier efforts to develop software in-house largely stumbled, first by holding up launches of its namesake brands ID models, then by handicapping those vehicles sales because of buggy features. The group, which also includes Audi and Porsche AG, has seen EV sales rise in Europe this year after improving software and updating models.
