According to the Volkswagen Group, its joint venture with Rivian has achieved a key milestone by completing winter testing of Rivian’s technology in VW vehicles. As a result, the milestone unlocks an additional $1 billion in investment from Volkswagen Group in Rivian.
Today’s latest milestone news from across the pond dates back to summer 2024, when Volkswagen Group initially announced a new joint venture with Rivian that entails a total investment of up to $5.8 billion (with a “b”) should certain goals be met.
The purpose of the joint venture was to develop a “next generation electrical/electronic architecture.” VW Group initially invested a cool billion in Rivian at the time of the announcement, while gaining immediate access to Rivian’s electronics architecture and software development – a major strength of Rivian and a category that the German auto conglomerate has… stumbled in.
Two years later, Rivian’s technology has contributed to the development of a new Software Defined Vehicle (SDV) architecture, and Volkswagen Group has been testing it with several prototype vehicles from VW, Audi, and Scout Motors.
Winter testing is reportedly now complete, and per the terms of its 50/50 joint venture, Volkswagen Group will invest another $1 billion in Rivian – seemingly a win for both automakers.
Rivian cashes in on latest Volkswagen joint venture milestone
As mentioned above, Volkswagen Group announced the completion of winter testing of its production-intent zonal architecture for the first generation of software‑defined vehicles (SDVs). Testing lasted several months and included prototypes of the ID.EVERY1 (pictured above) in Phoenix, Arizona, and Arjeplog, Sweden.
Testing was led by a joint team from Volkswagen, Audi, Scout, and RV Tech, who validated the functionality and performance of the electronics and software developed with Rivian’s support – an important milestone for the joint venture’s architecture development.
After the software-defined vehicles were equipped and their functions confirmed in the US, they were shipped to Sweden for stress testing under extreme conditions to ensure that hardware and software functioned cohesively, including testing features such as over-the-air (OTA) updates.
According to Volkswagen Group, the winter testing was a success, and its results demonstrate that this new SDV architecture can already operate reliably under harsh winter climatic and dynamic driving conditions. VW Group CEO, Oliver Blume, elaborated:
We are accelerating toward the future. With the successful completion of the winter tests, our joint venture once again demonstrates the speed and precision of its work. The close integration between the joint venture, our brands, and the Group follows a clear objective: to excite people with products and technologies that set new standards. This is how we are driving development forward across the Volkswagen Group – with the ambition to become the global automotive tech driver.
Volkswagen Group said it plans to build on this milestone in its next development phases within the joint venture with Rivian, which will more closely involve individual Group brands like Audi and Porsche. The German automaker said it is also sending a group of software specialists to “RV Tech locations like Palo Alto” to deepen their understanding of the joint venture’s architecture and code before returning to Germany to help speed up development.
The Group intends to sell EVs powered by this SDV architecture in markets across the Western Hemisphere. Meanwhile, Rivian is about to receive another $1 billion from its joint venture with the Volkswagen Group, just as its long-anticipated R2 is set to begin initial customer deliveries. We assume the investment will be delivered as before, via a $1 billion convertible note that will convert into an equity stake at a later date.
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