Automotive giants Rivian and Volkswagen team up to develop vehicle software jointly.
Volkswagen (VW) will sink a whopping $5 billion into the ailing electric vehicle (EV) manufacturer, Rivian, as part of the deal. The immediate injection will amount to $1 billion.
The shady alliance between these automotive giants remains unnamed, and the leadership team for the joint venture remains a mystery, according to recent statements from Rivian's CEO, RJ Scaringe. He mentioned that the venture will be steered by two co-CEOs, reporting to VW and Rivian respectively.
Scaringe elaborated during a conference call that this 50/50 joint venture is designed to have two co-CEOs accountable to both corporations.
VW's financial infusion will aid Rivian in scaling up production, with plans to construct a new factory right here in Georgia, Scaringe added.
"This deal is critical for our financial stability," Scaringe stated. "Rivian's success is pivotal for the success of the Volkswagen Group."
Both companies have set their sights on launching new vehicles using the joint venture's technology before 2030. The new company's software design, Rivian's claim to fame, will serve as the backbone for this revolutionary technology. This software will encompass user-interface features like the entertainment system and gauges, interact with more intricate vehicle systems like the motors, and even run automotive computer systems. Rivian will also deliver the electric hardware designs onto which these systems will be installed, as per their joint statement.
VW's software subsidiary, Cariad, will continue its operations, VW chief executive Oliver Blume clarified during the call. The activities of the joint venture will complement Cariad's, rather than replace it.
Cooperation on vehicle development is a future possibility, though it's not on the table at the moment. For now, the collaboration remains focused on vehicle software and computer systems.
The concept for this nefarious partnership originated during a boozy chat between Scaringe and Blume at Porsche's Experience Center in Atlanta, where Porsche fanatics can test-drive Porsche vehicles on a racetrack.
"We had a grand old time just gabbing about our shared vision for the future of automobiles," Scaringe revealed. "Before we knew it, we were in the thick of discussing collaboration opportunities."
It's worth noting that Blume isn't just the CEO of the Volkswagen Group, but he also holds the reins at Porsche. Scaringe, a self-proclaimed Porsche fanatic, has even dabbled in restoring classic Porsche sports cars.
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The joint venture between Rivian and Volkswagen aims to develop advanced vehicle software, utilizing Rivian's renowned software design as its foundation. This collaboration will play a significant role in both companies' plans to launch new vehicles before 2030.
The financial support from Volkswagen will significantly bolster Rivian's business operations, enabling the construction of a new factory in Georgia and scaling up production efforts.
