VW puts $5B into cash-hungry Rivian, and Rivian will help fix up VW’s software

Enlarge (credit: Rivian)

Volkswagen is committing $5 billion to upstart EV company Rivian, with $1 billion in cash upfront and $4 billion over time. The companies aim to use this joint venture to deliver new vehicles "in the second half of the decade," according to the announcement, and the cash will likely help push along Rivian's next generation of vehicles, including more affordable models.

Oliver Blume, left, CEO of Volkswagen Group, and RJ Scaringe, founder and CEO of Rivian. (credit: Rivian)

Rivian founder and CEO RJ Scaringe wrote on X (formerly Twitter) that the partnership "brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and scale." VW Group, which also controls Porsche, Lamborghini, Audi, and Ducati, among others, has a lot to gain from working with Rivian, particularly when it comes to software and ride control. Ars and most other reviewers have been impressed by Rivian's drive engineering and display software on the R1T truck, R1S SUV, and the second generations of them both, which majorly reworked the underpinnings and offerings, largely through design and software choices.

Volkswagen's recent software moves have been on an opposing trajectory. The Group's 2019 moves to align all its brands' software under one division, Cariad, with three platforms developed at once, has led to massive leadership shake-ups and restarts. We were not impressed with the ID.4's infotainment system in 2021, and further bugs in both system and screen software plagued the car, undermining what was otherwise regarded as a good wheels-on-road experience.