By Abhirup Roy
PALO ALTO, California (Reuters) – A three way partnership between U.S. electric pickup and SUV maker Rivian and Volkswagen is in talks with other automakers about supplying their software and electrical architecture, a senior Rivian executive said on Thursday.
The German automaker agreed in November to take a position $5.8 billion within the three way partnership, which can integrate advanced electrical infrastructure and Rivian’s software technology for each corporations’ future electric vehicles.
While a three way partnership will give Rivian higher volumes to barter higher supplier deals and reduce costs, seen as critical amid a slowdown in EV demand, Volkswagen and potentially other traditional automakers will get quick and quick access to technology and software they’ve struggled to construct for years.
“I’d say that many other OEMs are knocking on our door,” Rivian Chief Software Officer Wassym Bensaid said in an interview, referring to Original Equipment Manufacturers, a phrase used to explain vehicle makers.
Bensaid, who can also be co-CEO of the three way partnership, declined to supply names of the interested automakers and details on what stage the talks were at.
Rivian’s architecture requires fewer electronic control units and significantly less wiring, reducing vehicle weight and simplifying manufacturing. The technology is core to constructing cars with software that might be updated over the air like a smartphone – what the industry calls “software-defined vehicles”, an area where established automakers are still running behind.
“There may be demand,” said Bensaid, adding that the priority until 2027 was to roll out the R2, Rivian’s smaller, less-expensive SUV and to integrate the technology in other Volkswagen brands. “Obviously other OEMs are talking to us and we’re attempting to determine methods to support that in the longer term.”
“Some other OEM who desires to make a leap from a technology standpoint, the three way partnership today becomes one in every of the important thing partners with whom they’ll make that collaboration,” he said.
The enterprise is more likely to change into the platform of alternative within the Western world aside from Tesla, Canaccord Genuity analysts said in a note. The three way partnership also helps alleviate “a big chunk of the capital concern” for Rivian, the analysts said.
(Reporting by Abhirup Roy in Palo Alto, California, and Arsheeya Bajwa in Bengaluru; Editing by Peter Henderson and Jamie Freed)