Volkswagen and Rivian plan to sell their EV software and architecture externally

Volkswagen and Rivian are building an electric vehicle platform they want to sell to other automakers, according to press release on Wednesday. The plan centers on the joint venture the two formed one year ago, called RV Tech, which brings together engineers and software teams from both sides. The project has moved far enough that the companies are now speaking openly about offering the electrical and software system to outside manufacturers instead of limiting it to their own models. At a briefing held Wednesday in Palo Alto, Rivian’s software chief and RV Tech co-chair Wassym Bensaid told reporters the work they are doing solves challenges common across the auto industry. Wassym said, “We’re solving a problem for the larger automotive industry. That could become an opportunity.” He noted that the platform is built to scale across different body types and sizes in Western markets. The team is building something they expect to run multiple kinds of vehicles and to reach buyers in several regions. RV Tech prepares system tests and outlines licensing plans Wassym explained that licensing the system is financially different from building and selling cars. He said the earnings that could come from licensing are “a very different ballgame” and come with “a very different margin profile from a business standpoint than making cars.” RV Tech plans to begin testing its platform in winter conditions during the first quarter of 2026. That phase will involve models from Audi, Volkswagen, and Scout, giving the joint venture real‑world data on how the system performs in harsh climates. Volkswagen has opened its technology to others before. Past deals saw Ford and Mahindra & Mahindra use the company’s first‑generation EV platform for their own electric models. But the new collaboration comes at a time when the German automaker is dealing with tariffs in the United States, weaker sales in China, and slowing momentum in Europe. As part of efforts to cut costs and rebuild demand, Oliver Blume, the company’s chief executive, approved as much as $5.8 billion to support the partnership with Rivian. For Rivian, which has been losing money, the investment provides funding at a time when many manufacturers are rethinking their EV strategies. The joint venture is using Rivian’s centralized electronics layout. The structure uses fewer computing units, which helps Volkswagen lower development costs. The project is not limited to electric models. RV Tech co-chair Carsten Helbing said the underlying structure can support combustion engine vehicles as well. That gives the companies more potential buyers if they choose to license the system widely. First models using the new platform line up for release The first vehicle to use the platform will be Rivian’s R2 sport utility vehicle, which is expected early next year. Volkswagen will follow with its compact EV called ID. EVERY1, targeting a price of about €20,000 or roughly $23,000, with release planned in 2027. After that, larger and more rugged vehicles from the Scout brand will enter production using the same system. Volkswagen is also working with Xpeng for the Chinese market, where that partnership focuses on a separate platform for buyers in that region. The push for outside help follows earlier problems the German automaker faced in trying to build software internally. Volkswagen’s own systems delayed the launch of ID models and caused issues that harmed sales once the cars reached the market. Updates over the past year improved software performance, which helped raise EV sales figures in Europe. Oliver wants to succeed where his predecessor Herbert Diess struggled. Herbert became the leader of the Volkswagen brand shortly before the diesel emissions scandal. At that time he said electric cars would become the company’s “strategic core.” He launched internal software teams and expanded work on autonomous driving. During a 2021 “Power Day” event, Herbert laid out plans for six battery factories across Europe, dozens of new EV models, and a target of selling up to three million electric vehicles by this year. That period briefly turned Volkswagen into Germany’s most valuable company on the stock market. Join Bybit now and claim a $50 bonus in minutes