Volkswagen initially pledged a $5 billion deal for collaboration on software and architecture but announced an increased investment this week
In Europe, Volkswagen Group is exploring cost-cutting measures, including potential plant closures and worker pay reductions, to stabilize its finances. Meanwhile, across the Atlantic, the company is ramping up spending, announcing an increased investment in Rivian to $5.8 billion this week.
Back in June, Volkswagen committed $5 billion to a joint venture with Rivian aimed at developing shared electrical architecture and software for their vehicles. Volkswagen’s software division, Cariad, has been a persistent challenge for the automaker, with its issues delaying key launches like the Porsche Macan Electric by a year.
The technology won’t be entirely new but will build on Rivian’s existing systems. Volkswagen plans to debut its first car using the new software in 2027, with the technology being shared across the VW Group in models from Volkswagen, Audi, Porsche, and the newly launched Scout Motors. However, Rivian is expected to be the first to implement the software, aiming to deliver its compact R2 model in 2026, as promised.
Given the tight timeline, development of the architecture was already well underway before the formal launch of Rivian and VW Group Technology, LLC this week. According to Bloomberg, Rivian demonstrated a Volkswagen test vehicle equipped with Rivian software, successfully adapted within just 12 weeks.
The new joint venture will bring together developers and software engineers from both companies, with its initial headquarters in Palo Alto, California. Additionally, three other locations are reportedly being planned in North America and Europe.
In a LinkedIn post, VW COO Arno Antlitz highlighted the partnership’s synergy, noting that Volkswagen’s scale and vehicle architecture expertise, combined with Rivian’s industry-leading technology stack, make them perfect collaborators.
