Bundeskartellamt approves joint venture between VW and Rivian

The Bundeskartellamt gave the planned joint venture between Volkswagen (VW) and Rivian Green Light. This cooperation, which focuses on the development of new software and electronic architectures, is financed with $ 2 billion on the part of VW. The joint venture is kept 50 percent each by both companies and is to be founded in the fourth quarter of 2024.

The aim of the partnership: Future of the vehicle architecture

The cooperation between VW and Rivian aims to develop the next generation of the software defined Vehicles (SDV). This advanced vehicle architecture should make it possible to flexibly control the functions and control units of the cars using software and to regularly update via over-the-air (OTA) updates. The partnership will not affect batteries, electrical drives or autonomous driving. Instead, the focus is on the network architecture in the car, the topology of control units (ECU) and the associated software.

Structure and leadership of the joint venture

The joint venture is led by two CO COS: Rivian takes over the technical management, while VW takes the role of the Chief Operating Officer (COO). This structure is intended to ensure a balanced distribution of responsibilities and skills.

Financial details and further investments

Volkswagen plans a total of $ 5 billion in Rivian. In addition to the one-off payment of $ 2 billion to found the joint venture, VW will provide another loan in 2026. Another aspect of the partnership is the possibility for VW to access the current electric architecture and software from Rivian.

Competition and market conditions

The Bundeskartellamt found that the cooperation does not offer any reason to worry about competitive conditions. The authority argues that the partnership is not a significant disability of the competition and that there will continue to be an adequate range of E/E architectures that can be used by other manufacturers. Andreas Mundt, President of the Federal Cartel Office, emphasized that the investigation had not given any reason to consider.

Strategic importance for VW and Rivian

For Volkswagen, the joint venture is a strategic measure to achieve a technological lead in the field of digital vehicle architecture and software development. Through the partnership, VW hopes for access to Rivians innovative technology and expertise in the field of electronic architecture. Rivian, in turn, benefits from Volkswagen's global market presence, which will support the international expansion of the company.