Rivian and Volkswagen Group have announced a joint venture to develop vehicle software, with VW committing a total of $5 billion to Rivian, including an immediate $1 billion investment. The joint venture will not have a designated name or leadership team yet, but Rivian's CEO mentioned that it will have two co-leaders reporting to each automaker.
VW's investment will aid Rivian in expanding its manufacturing capabilities, potentially leading to a new factory in Georgia. Both companies aim to introduce new vehicles utilizing the joint venture's technologies by 2030.
The joint venture will leverage Rivian's existing vehicle software design as the foundation for its software, encompassing user-interface software and deeper vehicle software interacting with components like motors. Rivian will also contribute its electric hardware designs to support these systems.
VW's vehicle software subsidiary, Cariad, will continue its operations alongside the new joint venture. The collaboration will focus solely on vehicle software and computer systems for now, with potential future cooperation on vehicles themselves.
The idea for the joint venture emerged during a conversation between the CEOs at Porsche's Experience Center in Atlanta, leading to discussions on aligning their visions and exploring collaboration opportunities.
While the joint venture's specifics are still evolving, the partnership signifies a significant step towards advancing vehicle software technology and potentially fostering future collaborations between Rivian and Volkswagen Group.
