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 govt stated on Thursday.
The German automaker agreed in November to take a position $5.8 billion within the three way partnership, which is able to combine superior electrical infrastructure and Rivian’s software program expertise for each corporations’ future electrical autos.
Whereas a three way partnership will give Rivian greater volumes to barter higher provider offers and scale back prices, seen as crucial amid a slowdown in EV demand, Volkswagen and probably different conventional automakers will get fast and easy accessibility to expertise 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 Officer Wassym Bensaid stated in an interview, referring to Authentic Tools Producers, a phrase used to explain car makers.
Bensaid, who can be co-CEO of the three way partnership, declined to offer names of the automakers and particulars on what stage the talks had been at.
Rivian’s structure requires fewer digital management models and considerably much less wiring, lowering car weight and simplifying manufacturing. The expertise is core to constructing automobiles with software program that might 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 working behind.
“There’s demand,” stated Bensaid, including that the precedence till 2027 was to roll out the R2, Rivian’s smaller, less-expensive SUV and to combine the expertise in different Volkswagen manufacturers. “Clearly different OEMs are speaking to us and we’re attempting to determine learn how to assist that sooner or later.”
“Every other OEM who needs to make a leap from a expertise standpoint, the three way partnership at this time turns into one of many key companions with whom they’ll make that collaboration,” he stated.
The enterprise is prone to develop into the platform of selection within the Western world other than Tesla, Canaccord Genuity analysts stated in a observe. The three way partnership additionally helps alleviate “a big chunk of the capital concern” for Rivian, the analysts stated.
(Reporting by Abhirup Roy in Palo Alto, California, and Arsheeya Bajwa in Bengaluru; Enhancing by Peter Henderson and Jamie Freed)
