Rivian and Volkswagen have received the green light from German regulators to form a new joint venture. The German Federal Cartel Office has approved the Rivian-VW partnership without any antitrust concerns.
The two companies have secured essential certification for their vehicles from Germany’s Federal Motor Transport Authority (KBA).
More than a month has passed since Rivian and Volkswagen unveiled their groundbreaking partnership. The newly formed partnership leverages Rivian’s software prowess to craft a framework for the development of cutting-edge electric vehicles.
Volkswagen plans to invest up to $5 billion, with $3 billion earmarked for Rivian and the remaining $2 billion allocated to its joint venture. Despite this, investments are largely driven by meeting “clear and specific milestones.”
The partnership achieved a significant milestone on Monday, securing approval from Germany’s regulatory authorities to move forward.
The German Federal Cartel Office cleared a three-way partnership between Volkswagen and US electric vehicle manufacturer Rivian under merger control, also approving VW’s investment in Rivian.
The German competition regulator Andreas Mundt has declared that the joint venture between electric vehicle manufacturers Rivian and Volkswagen will not substantially hinder the ability of efficient competitors to operate effectively.
Rivian’s vehicle lineup includes the left-hand-drive capable R1T pickup truck, the R1S SUV, and three trim levels: R2, R3, and top-of-the-line R3X.
Electrek’s Take
The joint venture between Rivian and Volkswagen is expected to be officially concluded by year-end. The regulatory hurdles have been cleared, as the German antitrust authority has granted its approval, signaling a smooth progression for the partnership.
Rivian seemingly scales up production after deliberately halting operations at its Normal, Illinois facility, resulting in steady delivery numbers (13,790) throughout the second quarter. Rivian anticipates a significant increase in production output by the latter half of 2024.
Despite being Volkswagen’s sole electric vehicle in the US market, the ID.4 saw a decline of 15% in gross sales. Despite Volkswagen’s efforts, the company has faced challenges in gaining momentum as the automotive landscape shifts towards electric vehicles (EVs), hindered by software-related issues that have stalled its progress.
Software program issues have hampered the rollout of several electric vehicles (EVs), mirroring the delays experienced by the Porsche Macan. Volkswagen’s plans for additional electric vehicles, including the highly anticipated ID.4 successor, are being held back due to persistent software issues.
The Volkswagen Group’s forthcoming SSP ( Scalable Systems Platform) generation, leveraging software from its partnership with Rivian, is not expected until 2029. That’s approximately 18 months from our initial proposals.
Rivian’s CEO, RJ Scaringe, noted that the company’s joint venture with Volkswagen differs significantly from its collaborations with Ford and Mercedes, as it is specifically designed to address “the very issue that has always been the Achilles’ heel.”
Volkswagen is counting on Rivian to revamp its software capabilities. What do you suppose? Will a partnership with Rivian help Volkswagen overcome software challenges and accelerate its electric vehicle development? Tell us your ideas under.
