Photo: @Kanundrum17 via X
Rivian lured Volkswagen Group into a relationship of convenience that both companies need to move past their current problems. The Rivian-Volkswagen joint venture aims to develop the next-generation platforms for future EV models produced by both carmakers. The company is already hiring, and some of the job offers reveal intriguing details about their plans.
Days ago, Rivian and Volkswagen made their partnership official, with plans to jointly develop next-generation EV architectures for both companies. The Rivian and Volkswagen Group Technologies, as it was named, already has Rivian's zonal vehicle architecture and software as the stepping stone. However, both companies aim much higher.
To be sure, Volkswagen is not buying a turn-key solution from Rivian, even though it seems like this is the case. Instead, it wants to be involved in the development of future platforms, and it's willing to pay dearly for that—three-quarters of the shared development costs until 2028, to be precise. Even when the costs are split in half after 2028, Volkswagen will add $100 million each year, gradually reducing Rivian's share of the costs.
The very fact that Volkswagen and Rivian debuted their joint venture reveals that both steps have concluded successfully. Volkswagen has looked into Rivian's zonal architecture and software and decided that it is what it needs to move forward in the software-defined vehicle era. The deal has been signed, and the joint venture has started operations. Not only that, but it's already hiring, with about 60 positions listed on the company's Careers portal.
This is somehow intriguing, considering that the official communique revealed that both companies will dedicate human resources to the joint venture. Most open positions are for senior developers and engineers, showing that both companies have bigger plans than to update Rivian's existing architecture. Even more telling is the kind of expertise the joint venture is seeking.
Currently, Rivian doesn't offer in-car gaming in its vehicles. However, Volkswagen ID.OS does have a few basic games, and Volkswagen likely wants this expanded. Since Rivian uses Unreal Engine as its graphics motor and doesn't lack in the 3D hardware department, we might see some AAA titles coming to future Rivian and Volkswagen EVs. Other job offers reveal that the joint venture intends to expand camera-based features with new video and vision technologies.
Key to the project appear to be senior developers and engineers with expertise in voice features and artificial intelligence. This comes after Rivian's software chief, Wassym Bensaid, shared his belief that voice commands should replace touch controls and buttons. Other positions require expertise in connectivity and networking, machine learning, navigation systems, and automation systems.
Paying for Rivian's software expertise seems like a win-win situation for both companies, but it doesn't necessarily mean this relationship will end happily. Firstly, because Volkswagen is a slow and clumsy heavyweight when it comes to software, and its decisions are already filtered through a complicated chain of command.
Add to that the apparently hurt German pride already surfacing in social media and comments to articles covering the Rivian-Volkswagen joint venture. The Germans don't see Volkswagen as a failure yet, despite it losing grip in every market. I have no doubt that the same spirit is present at every decision level in the Volkswagen Group. Some will be happy if this partnership fails and will do their best to ensure this outcome is the most likely.
On the other hand, Rivian wants more from this relationship than just money. Sure, money is crucial, but Rivian sees the deal as the opportunity to sell the Volkswagen Group not only knowledge and software but also the underlying hardware of its vehicle architecture. For now, this only covers the zonal network controllers and the infotainment system, but it could quickly expand to motors, power electronics, and beyond. This will ensure that Rivian achieves an economy of scale and lowers its production costs significantly.
It might not be obvious, but Rivian's big ambition is to sign similar deals with more legacy carmakers. This would make Rivian a sort of turn-key solution supplier for software-defined vehicles, something like Bosch and Nvidia combined. It's easy to imagine how this might conflict with Volkswagen's idea of a partnership, which might look more like an exclusive relationship.
To be sure, Volkswagen is not buying a turn-key solution from Rivian, even though it seems like this is the case. Instead, it wants to be involved in the development of future platforms, and it's willing to pay dearly for that—three-quarters of the shared development costs until 2028, to be precise. Even when the costs are split in half after 2028, Volkswagen will add $100 million each year, gradually reducing Rivian's share of the costs.
Rivian meets Volkswagen: A short but fruitful courtship
Before committing to this deal, Volkswagen had special requests from Rivian, including a peek inside its software platform. Rivian also demonstrated it could successfully transplant its zonal architecture and software to one of Volkswagen Group's existing vehicles, an Audi Q6 e-tron. Underpinned by the Group's Premium Platform Electric (PPE) architecture, this is the latest and greatest in the German carmaker's portfolio, alongside the closely-related Porsche Macan EV.The very fact that Volkswagen and Rivian debuted their joint venture reveals that both steps have concluded successfully. Volkswagen has looked into Rivian's zonal architecture and software and decided that it is what it needs to move forward in the software-defined vehicle era. The deal has been signed, and the joint venture has started operations. Not only that, but it's already hiring, with about 60 positions listed on the company's Careers portal.
This is somehow intriguing, considering that the official communique revealed that both companies will dedicate human resources to the joint venture. Most open positions are for senior developers and engineers, showing that both companies have bigger plans than to update Rivian's existing architecture. Even more telling is the kind of expertise the joint venture is seeking.
3D Games are coming to Rivian and Volkswagen EVs
One of the most intriguing job openings is for a Senior Engineering Manager for Vehicle Gaming. The role summary mentions the need to develop "innovative video gaming capabilities" for Rivian and Volkswagen EVs. The role also involves good connections with the gaming industry to integrate gaming content into the vehicle's infotainment system.Currently, Rivian doesn't offer in-car gaming in its vehicles. However, Volkswagen ID.OS does have a few basic games, and Volkswagen likely wants this expanded. Since Rivian uses Unreal Engine as its graphics motor and doesn't lack in the 3D hardware department, we might see some AAA titles coming to future Rivian and Volkswagen EVs. Other job offers reveal that the joint venture intends to expand camera-based features with new video and vision technologies.
Key to the project appear to be senior developers and engineers with expertise in voice features and artificial intelligence. This comes after Rivian's software chief, Wassym Bensaid, shared his belief that voice commands should replace touch controls and buttons. Other positions require expertise in connectivity and networking, machine learning, navigation systems, and automation systems.
A relationship of convenience
The US startup Rivian and the German carmaker Volkswagen are now friends with benefits, although what they want from this relationship might be different. Volkswagen has hit a wall with its software division Cariad, which burnt billions without delivering the software-defined vehicle architecture that Volkswagen was chasing. Rivian, on the other hand, has the software, but its cash reserves risk drying out before it becomes profitable.Paying for Rivian's software expertise seems like a win-win situation for both companies, but it doesn't necessarily mean this relationship will end happily. Firstly, because Volkswagen is a slow and clumsy heavyweight when it comes to software, and its decisions are already filtered through a complicated chain of command.
Add to that the apparently hurt German pride already surfacing in social media and comments to articles covering the Rivian-Volkswagen joint venture. The Germans don't see Volkswagen as a failure yet, despite it losing grip in every market. I have no doubt that the same spirit is present at every decision level in the Volkswagen Group. Some will be happy if this partnership fails and will do their best to ensure this outcome is the most likely.
On the other hand, Rivian wants more from this relationship than just money. Sure, money is crucial, but Rivian sees the deal as the opportunity to sell the Volkswagen Group not only knowledge and software but also the underlying hardware of its vehicle architecture. For now, this only covers the zonal network controllers and the infotainment system, but it could quickly expand to motors, power electronics, and beyond. This will ensure that Rivian achieves an economy of scale and lowers its production costs significantly.
It might not be obvious, but Rivian's big ambition is to sign similar deals with more legacy carmakers. This would make Rivian a sort of turn-key solution supplier for software-defined vehicles, something like Bosch and Nvidia combined. It's easy to imagine how this might conflict with Volkswagen's idea of a partnership, which might look more like an exclusive relationship.
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