Rivian says different automakers ‘knocking on door’ about tech from VW three way partnership

By Abhirup Roy

PALO ALTO, California (Reuters) – A three way partnership between U.S. electrical pickup and SUV maker Rivian (NASDAQ:RIVN) and Volkswagen (ETR:VOWG_p) is in talks with different automakers about supplying their software program and electrical structure, a senior Rivian government mentioned on Thursday.

The German automaker agreed in November to speculate $5.8 billion within the three way partnership, which can combine superior electrical infrastructure and Rivian’s software program know-how for each corporations’ future electrical autos.

Whereas a three way partnership will give Rivian increased volumes to barter higher provider offers and scale back prices, seen as important amid a slowdown in EV demand, Volkswagen and doubtlessly different conventional automakers will get fast and quick access to know-how and software program they’ve struggled to construct for years.

“I might say that many different OEMs are knocking on our door,” Rivian Chief Software program (ETR:SOWGn) Officer Wassym Bensaid mentioned in an interview, referring to Unique Tools Producers, a phrase used to explain automobile makers.

Bensaid, who can be co-CEO of the three way partnership, declined to supply names of the automakers and particulars on what stage the talks have been at.

Rivian’s structure requires fewer digital management models and considerably much less wiring, lowering automobile weight and simplifying manufacturing. The know-how is core to constructing vehicles with software program that may very well be up to date over the air like a smartphone – what the business calls “software-defined autos”, an space the place established automakers are nonetheless operating behind.

“There’s demand,” mentioned Bensaid, including that the precedence till 2027 was to roll out the R2, Rivian’s smaller, less-expensive SUV and to combine the know-how in different Volkswagen manufacturers. “Clearly different OEMs are speaking to us and we’re making an attempt to determine how you can help that sooner or later.”

“Some other OEM who needs to make a leap from a know-how standpoint, the three way partnership at present turns into one of many key companions with whom they’ll make that collaboration,” he mentioned.

The enterprise is prone to turn into the platform of selection within the Western world other than Tesla (NASDAQ:TSLA), Canaccord Genuity analysts mentioned in a word. The three way partnership additionally helps alleviate “a major chunk of the capital concern” for Rivian, the analysts mentioned.