Rivian says other automakers are “knocking on the door” about VW joint venture’s technology
Author: Abhirup Roy
PALO ALTO, Calif. (Reuters) – A U.S. joint venture between electric pickup truck and SUV makers Rivian and Volkswagen is in talks with other automakers about providing its software and services, a senior Rivian executive said on Thursday. Electrical construction.
The German automaker agreed in November to invest $5.8 billion in the joint venture, which will integrate advanced electrical infrastructure and Rivian’s software technology for the two companies’ future electric vehicles.
While the joint venture will give Rivian higher volumes to negotiate better supplier deals and lower costs, which is crucial amid slowing EV demand, VW and other traditional automakers will have quick and easy access to their efforts. Years of building technology and software.
“I would say a lot of other OEMs are knocking on the door,” Rivian chief software officer Wassym Bensaid said in an interview.
Bensaid, who is also co-chief executive of the joint venture, declined to name the interested carmakers and provide details about the stage of the talks.
Rivian’s architecture requires fewer electronic control units and significantly less wiring, reducing vehicle weight and simplifying manufacturing. The technology is at the heart of building cars with software that can be updated over the air like a smartphone – what the industry calls “software-defined vehicles,” an area where established automakers are still lagging.
“There is demand,” Bensaid said, adding that the priority until 2027 is the launch of the R2, Rivian’s smaller, less expensive SUV, and integrating the technology into other Volkswagen brands. “Obviously, other OEMs are talking to us and we’re trying to figure out how to support this in the future.”
“Any other OEM that wants to make a leap from a technology perspective, today’s joint venture will be one of the key partners they can work with,” he said.
Canaccord Genuity Analyst said in a report that the joint venture could become the platform of choice in the Western world, besides Tesla. The joint venture would also help relieve Rivian’s “significant capital focus,” analysts said.
(Reporting by Abhirup Roy in Palo Alto, California and Arsheeya Bajwa in Bengaluru; Editing by Peter Henderson and Jamie Freed)
