Volkswagen and US electric car maker Rivian have just signed a €5 billion joint effort to develop the next generation of electric vehicle software and technology.
Who or what is Rivian?
Rivian is currently a bigger name in the US market, where it has seen much critical success for its R1T electric pickup and R1S electric SUV. Rivian beat Tesla to the punch - by some considerable time - in getting an all-electric pickup to the market, and recently the company showed more Euro-friendly models including the R2 SUV and R3 crossover, which should lead to a transatlantic launch in the coming years.
So, what’s happening with Volkswagen?
Rivian won big praise for the technology that underpins its electric models, from the way the touchscreen works to the way the batteries and electric motors are controlled. That’s technology that Volkswagen is keen to benefit from, hence the newly-signed joint venture which will see €5 billion invested to “create next-generation electrical architectures and best-in-class software technology.” That money will also help Rivian to develop its crucial R2 and R3 models.
So VW is going to use Rivian’s screens?
It goes a bit deeper than that. What’s being worked on here is the idea of a ‘software-defined’ vehicle, in which the hardware - the batteries and motors - can be just plucked off the shelf in a plug-and-play fashion, but what really gives a car its driving character, whether it be a sports car or an SUV, is the software. So yes, that’s software that you interact with through screens, but also the software that controls how the electric motors respond, how quickly the power steering reacts, how the batteries charge and so much more.
Oliver Blume, CEO of Volkswagen Group said: “Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness.”
RJ Scaringe, Founder and CEO of Rivian said: “We’re very excited to be partnering with Volkswagen Group. Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognised this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”