By Abhirup Roy
PALO ALTO, California (Reuters) – A three way partnership between U.S. electrical pickup and SUV maker Rivian and Volkswagen 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 automobiles.
Whereas a three way partnership will give Rivian increased volumes to barter higher provider offers and scale back prices, seen as essential amid a slowdown in EV demand, Volkswagen and doubtlessly different conventional automakers will get fast and easy accessibility to know-how and software program they’ve struggled to construct for years.
“I would say that many different OEMs are knocking on our door,” Rivian Chief Software program Officer Wassym Bensaid mentioned in an interview, referring to Unique Tools Producers, a phrase used to explain car makers.
Bensaid, who can also 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, decreasing car weight and simplifying manufacturing. The know-how is core to constructing automobiles with software program that could possibly be up to date over the air like a smartphone – what the trade calls “software-defined automobiles”, an space the place established automakers are nonetheless operating behind.
“There may be 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 assist that sooner or later.”
“Every 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 will make that collaboration,” he mentioned.
The enterprise is more likely to develop into the platform of alternative within the Western world aside from Tesla, Canaccord Genuity analysts mentioned in a word. The three way partnership additionally helps alleviate “a big chunk of the capital concern” for Rivian, the analysts mentioned.
(Reporting by Abhirup Roy in Palo Alto, California, and Arsheeya Bajwa in Bengaluru; Enhancing by Peter Henderson and Jamie Freed)
