In Palo Alto, California, on Jan 23 (Reuters) - a senior executive from U.S. electric vehicle manufacturer Rivian stated that a partnership with Volkswagen is in discussions with other car manufacturers to provide their software and electrical architecture.
Volkswagen is planning to invest $5.8 billion in this collaboration, which will incorporate advanced electrical infrastructure and Rivian's software for their upcoming electric vehicles.
The joint venture is anticipated to enhance Rivian's bargaining power with suppliers, lower costs, and grant Volkswagen and potentially other traditional automakers faster access to technology and software they have struggled to develop independently.
Rivian's technology reduces vehicle weight and simplifies manufacturing by requiring fewer electronic control units and wiring, enabling software updates over-the-air, a feature referred to as "software-defined vehicles" that sets the industry standard.
Rivian's Chief Software Officer, Wassym Bensaid, also joint venture co-CEO, mentioned that several other Original Equipment Manufacturers (OEMs) have expressed interest but refrained from disclosing names or the status of negotiations.
According to Bensaid, the immediate focus until 2027 is on launching the R2, a smaller, cost-effective SUV, and integrating the technology into various Volkswagen brands, while keeping an eye on supporting potential collaborations with other OEMs in the future.
Bensaid emphasized that the joint venture serves as a key partner for OEMs seeking technological advancements, paving the way for collaborative opportunities.
Analysts from Canaccord Genuity noted that the joint venture is poised to be a leading platform in the Western world outside of Tesla, addressing significant capital concerns for Rivian.