financetom
Technology
financetom
/
Technology
/
Rivian says other automakers 'knocking on door' about tech from VW joint venture
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Rivian says other automakers 'knocking on door' about tech from VW joint venture
Jan 23, 2025 8:34 PM

PALO ALTO, California, Jan 23 (Reuters) - A joint

venture between U.S. electric pickup and SUV maker Rivian

and Volkswagen is in talks with other

automakers about supplying their software and electrical

architecture, a senior Rivian executive said on Thursday.

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

both companies' future electric vehicles.

While a joint venture will give Rivian higher volumes to

negotiate better supplier deals and reduce costs, seen as

critical amid a slowdown in EV demand, Volkswagen and

potentially other traditional automakers will get quick and easy

access to technology and software they have struggled to build

for years.

"I'd say that many other OEMs are knocking on our door,"

Rivian Chief Software Officer Wassym Bensaid said in an

interview, referring to Original Equipment Manufacturers, a

phrase used to describe vehicle makers.

Bensaid, who is also co-CEO of the joint venture, declined

to provide names of the interested automakers and details on

what stage the talks were at.

Rivian's architecture requires fewer electronic control

units and significantly less wiring, reducing vehicle weight and

simplifying manufacturing. The technology is core to building

cars with software that could be updated over the air like a

smartphone - what the industry calls "software-defined

vehicles", an area where established automakers are still

running behind.

"There is demand," said Bensaid, adding that the priority

until 2027 was to roll out the R2, Rivian's smaller,

less-expensive SUV and to integrate the technology in other

Volkswagen brands. "Obviously other OEMs are talking to us and

we're trying to figure out how to support that in the future."

"Any other OEM who wants to make a leap from a technology

standpoint, the joint venture today becomes one of the key

partners with whom they can make that collaboration," he said.

The venture is likely to become the platform of choice in

the Western world apart from Tesla, Canaccord Genuity

analysts said in a note. The joint venture also helps alleviate

"a significant chunk of the capital concern" for Rivian, the

analysts said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2025 - www.financetom.com All Rights Reserved