Volkswagen to launch first Rivian-based models in 2027

Volkswagen Group has entered a joint venture agreement with US-based electric vehicle (EV) maker Rivian.

It will aim to use the existing Rivian electrical architecture and software technology stack, enabling the launch of Rivian’s R2 in the first half of 2026 and support the expected launch of the first models from the Volkswagen Group as early as 2027.

The joint venture is co-led by Wassym Bensaid (Rivian) and Carsten Helbing (Volkswagen Group).

Teams from Rivian and Volkswagen Group have successfully demonstrated the potential of their collaboration. The team developed an initial drivable demonstrator vehicle in 12 weeks. A Volkswagen Group vehicle has been retrofitted to run on Rivian’s zonal hardware design and integrated technology platform. 

The partnership is anticipated to accelerate the development of software for Rivian and Volkswagen Group. It is expected to allow both companies to combine their complementary strengths and lower cost per vehicle by increasing scale and speeding up innovation globally. The deal, worth £3.94 billion, will see the two companies create electrical architecture and software technology for the next generation of EVs.

Oliver Blume, CEO of Volkswagen Group, said: “The partnership with Rivian is the next logical step in our software strategy. With its implementation, we will strengthen our global competitive and technological position. The launch of the joint venture demonstrates the potential we want to leverage together in the coming years. We have a clear plan to offer our customers the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches, and a competitive cost base driven by synergies.”

Volkswagen Group plans to make a £3.94 billion investment into Rivian. Initially Volkswagen Group will invest £790m in Rivian through an unsecured convertible note that will convert into Rivian’s common stock subject to certain conditions upon the later of receipt of regulatory approvals and December 1, 2024. Volkswagen Group is expected to invest a further £3.16bn as part of the transaction.

RJ Scaringe, founder and CEO of Rivian, said: “Today’s finalisation of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles. We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future. Rivian will continue to stay focused on creating best in class products and services that benefit our customers, helping to drive EV adoption.”