Rivian And Volkswagen Form Joint Venture To Develop Electric Vehicle Software

Photo illustration. (Doc. Rivian)

JAKARTA - Rivian and Volkswagen announced the establishment of a jointly controlled and owned joint venture to create software architecture for future electric vehicles.

This partnership aims to accelerate the development of software for Rivian and the Volkswagen Group. With this collaboration, the two companies hope to incorporate their power, lower costs per vehicle over an economic scale, and accelerate innovation globally.

"Our subscription will benefit from a strategic partnership with Rivian in creating a leading technology architecture. Through this collaboration, we will provide the best solution for our vehicle at a faster and lower cost," said Volkswagen Group CEO Oliver Blume, in an official statement from the manufacturer., Thursday, June 27.

The design of the zonal hardware and integrated technology platform Rivian that has been proven in the market is expected to be the basis for the development of future SDV in this joint venture. Rivian will contribute his electrical architectural expertise and license his intellectual property rights to the joint venture.

The two companies plan to launch a vehicle that utilizes the technology of this joint venture in the second half of this decade. In the short term, the joint venture is expected to allow the Volkswagen Group to take advantage of Rivian's existing electrical architecture and software platforms.

"We are also acting in the best interest of our powerful brands, which will inspire their iconic products. This partnership is in excellent agreement with our current software, product and partnership strategy. We are strengthening our technology profile and competitiveness," added Blume.

Sementara CEO Rivian, RJ Scaringe, menyatakan sangat senang bermitra dengan Volkswagen Group. Sejak awal, Rivian telah fokus pada pengembangan teknologi yang sangat terdisferensiasi. Scaringe mengaku bangga bahwa salah satu perusahaan otomotif terbesar dan paling terhormati di dunia telah menyadari hal ini.

"This partnership is not only expected to bring our software and related zonal architecture to a wider market through the Volkswagen Group's global reach, but also help secure our capital needs for substantial growth," said RJ Scaringe.

Supported by the vision of a strategic partnership, the Volkswagen Group plans to invest $5 billion into Rivian. Initially, the Volkswagen Group will invest $1 billion in Rivian through unsecured conversion bonds that will convert into Rivian's regular shares on certain conditions after being approved by regulators on December 1, 2024. The Volkswagen group is also expected to invest another 4 billion US dollars or around Rp65 trillion as part of the transaction.