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 8:54 PM

PALO ALTO, California (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 >
Huawei Rings Up Improbable Comeback As Revenue Soars
Huawei Rings Up Improbable Comeback As Revenue Soars
Feb 11, 2025
Key Takeaways: Huawei reported its second-highest annual revenue in 2024, driven by strong sales for its smartphone and smart vehicle businesses The company's HarmonyOS will be key to its overseas smartphone expansion, filling a void after Huawei was forced to abandon Google's Android under U.S. sanctions    By Xia Fei Once written off as a casualty of U.S. sanctions, telecoms...
UK fibre company CityFibre delivers first year of profitability
UK fibre company CityFibre delivers first year of profitability
Feb 11, 2025
LONDON, Feb 11 (Reuters) - British fibre broadband company CityFibre reported its first full year of profit in 2024 as connected customers on its network passed 500,000, a total that is set to jump this year when major provider Sky joins its platform. The company, backed by Antin Infrastructure Partners and Goldman Sachs ( GS ), on Tuesday reported adjusted...
Baidu CEO says more AI spend still needed despite DeepSeek's success
Baidu CEO says more AI spend still needed despite DeepSeek's success
Feb 10, 2025
BEIJING (Reuters) - Investment in data centres and cloud infrastructure is still needed despite DeepSeek challenging the cost efficiency of large AI models, Baidu ( BIDU ) CEO Robin Li said on Tuesday. The investment in cloud infrastructure is still very much required. In order to come up with models that are smarter than everyone else, you have to use...
China's SMIC Q4 profit slumps 38.4%, misses estimates despite revenue growth
China's SMIC Q4 profit slumps 38.4%, misses estimates despite revenue growth
Feb 11, 2025
BEIJING (Reuters) - Semiconductor Manufacturing International Corp, China's largest contract chipmaker, reported a 38.4% year-on-year fall in fourth-quarter profit. Profit attributable to owners of SMIC reached $107.6 million in the October-December quarter, compared with analysts' estimate of $193.45 million, according to LSEG data. Revenue rose 31.5% to $2.2 billion, compared to market expectations of $2.18 billion, according to LSEG. ...
Copyright 2023-2025 - www.financetom.com All Rights Reserved