Green light: “No reason for concern” with VW/Rivian JV

German competition authorities have given approval for the proposed collaboration between Volkswagen and Rivian. The green light comes just one month after the partnership was officially announced. The Bundeskartellamt has cleared both the plans for a software joint venture (JV) and the proposed investment into Rivian by VW.

The move towards electrification and software-defined vehicles (SDVs) presents unprecedented challenges for traditional automakers, many of which have spent more than a century focussed on completely different skillsets. As these trends gain momentum, partnerships are springing up across the ecosystem. Volkswagen has massive scale and manufacturing expertise but has struggled to bring its software competency up to scratch. Rivian, while struggling with costs and scale, has developed a solid zonal architecture ideally designed for the SDV. The deal gives Rivian a financial lifeline and should allow VW to meet its goal of transitioning to one zonal E/E architecture for all Group platforms by 2028.

“The venture represents a significant concession by VW that, despite its size and resources, it is better off turning to a struggling start-up to address its electric vehicle (EV) needs,” observes Jonathan Storey of Automotive Reports.