Digital Demands

A Rivian-Volkswagen software and platform-sharing alliance might have seemed like a farfetched idea just a couple of years ago. But that’s exactly what we’ve got, at an increasingly precarious time for the EV industry in the US.

The joint venture, officially dubbed Rivian and Volkswagen Group Technologies (RV Tech), won’t be confined to just two brands, but will encompass Scout and Audi as well, with the goal of developing and licensing electronic architecture for Software-Defined Vehicles (SDVs).

Behind the industry buzzwords are modular central computers that govern all vehicle functions, spanning from infotainment to the powertrain itself, with this approach having gained a newfound importance in the EV age.

“The joint venture is rapidly developing the architecture for our future software-defined vehicles,” said Oliver Blume, CEO of the Volkswagen Group.

For the VW Group, the new SDV architecture will be headed into EVs based on the new SSP platform, which will be used in a large variety of models spanning several segments and price ranges, and covering several brands. The joint venture, now counting over 1500 employees, is already prepping so-called reference vehicles from VW, Audi, and Scout brands that will use the SDV architecture, with these prototypes set to hit the road in the first quarter of 2026.

One of the models slated for testing in severe winter conditions will include the Volkswagen ID.Every1. The planned EV itself is slated for a 2027 debut, and will be the first to feature a version of the new SDV architecture.

Rivian, meanwhile, will use the RV Tech’s architecture in its upcoming models a bit sooner, starting in 2026.

“Rivian will use the technologies created from the joint venture for its future products, R2, R3 and R3X and to keep its current vehicle fleet updated with the latest software,” VW revealed.

How did this unlikely partnership develop?

For the VW Group, costly delays at its Cariad unit in Germany appear to have been a big part of the motivation to seek a more agile software partner. VW infamously fired the top executives from its software unit in 2023, with the software crisis also playing a major role in the unceremonious departure of VW CEO Herbert Diess.

But the more tangible effects of the problems at Cariad included losses in the billions earlier in the decade, and long delays to the readiness of the PPE platform meant for Porsche and Audi.

VW now faces a fresh wave of Chinese competition in Europe, in addition to EV pressures in the US. It’s difficult to escape the impression that VW underestimated the importance of software early on and lost precious time.

For Rivian, the EV startup has faced its own challenges as it readied the R1S and R1T, but almost none of them were tied to software. Rather, the EV maker suffered a rougher than anticipated rollout due to the chip crunch and the soaring costs of components, as well as the typical cash burn experienced at the start of new vehicle production.

With the joint venture now a year old, Rivian’s founder and CEO sounded a note of optimism as effort approaches a crucial set of tests.

“We’re incredibly excited about the launch of R2 in the first half of next year, which will showcase the advancements the joint venture has made.”

And as Rivian readies its next batch of models, it will need further financing and a steady supply chain to ensure a smoother launch.

But RV Tech isn’t content to use the new software architecture for itself, signaling a willingness to license it to other automakers and thereby reap more profits. At the moment, it still has its hands full as multiple models from the VW Group will need to prove themselves on the road. So the fruits of the joint venture are far from a sure thing.

The two automakers will still need to navigate the challenges of the next two years in multiple regions while facing a rapidly advancing wave of competitors at home and overseas, with VW’s EV efforts in the US having recently suffered some notable setbacks.