The German Federal Cartel Office has officially approved the joint venture between Volkswagen (VW) and Rivian. The joint venture, announced just a month ago, aims to leverage Rivian’s software expertise to enhance VW’s capabilities.
According to the German Federal Cartel Office, known as the Bundeskartellamt, the joint venture would not significantly impede competition in the market, ensuring that there remains a sufficient range of services available for car manufacturers to build electrical and electronic (E/E) architectures.
In a statement, Andreas Mundt, President of the Bundeskartellamt, highlighted the importance of the project in the increasingly digital and connected automotive sector. “The question of the right system architecture is nothing less than a key competition parameter,” Mundt stated, emphasizing that the project does not raise any serious antitrust concerns.
The collaboration between VW and Rivian is set to create a new E/E architecture, based on Rivian’s existing software and electrical systems. This new technology platform will be integral to VW’s upcoming SSP electric platform, slated for launch by 2028. The partnership represents VW’s latest attempt to overcome its well-documented software challenges, particularly those associated with its Cariad software unit.
The collaboration also promises to cut production costs, a critical factor for Rivian, which is still suffering substantial losses with each EV produced and sold. The funding will aid in the expansion of Rivian’s production capabilities and support its plans to launch the R2 and R3 in the future.
The establishment of the joint venture is expected to be finalized in the fourth quarter of 2024. Leadership roles within the joint venture will be split, with each side appointing a co-CEO. For Rivian, this role will also encompass the responsibilities of the Chief Technology Officer (CTO), while VW’s co-CEO will oversee operations.
The financial commitments from VW are significant. The German automaker has announced plans to invest up to $3 billion directly into Rivian and an additional $2 billion into the joint venture by 2026, contingent on achieving specific milestones.
Volkswagen and Rivian plan to launch vehicles using the new technology between 2025 and 2030. This timeline aligns with VW’s broader strategic goals and reflects the long-term vision of both companies to dominate the EV market.
