Rivian founder RJ Scaring has revealed new details about the partnership with Volkswagen. The deal goes far beyond a normal joint venture and could shape the future of both companies.
Core of the collaboration: technology transfer from Rivian to VW
VW wants to use Rivian’s technology for its brands. Scaringe explains:
“We supply the structure of the control units and the basic operating system – both for the infotainment platform and for the real-time operating system.”
What does this mean in concrete terms?
1) Control units (ECUs): Computers that control specific functions such as the engine or air conditioning system
2) Basic operating system: software platform for general applications such as infotainment, navigation or vehicle diagnostics
3) Real-time operating system: Software platform for time-critical and safety-relevant functions such as braking or steering
Advantage of the Rivian architecture:
- Only 7 instead of 70-80 control units in the car
- Simpler vehicle architecture
- Faster software updates
- Significant cost savings
The technology is to be used in all VW Group brands in the future. Porsche, Audi, Lamborghini, Bentley and VW will then use the same basic architecture from Rivian.
Scaringe explains: “A car can have two or ten screens. That’s easy to change. But underneath, everything is standardized.”
That could mean In future, VW brands will primarily develop the user interface themselves. The technology underneath will come from the new joint venture – and can be adapted to their own requirements to a limited extent. A significant shift in competencies within the VW Group.
Setup of the joint venture: Deliberately shielded from the VW culture
Scaringe and VW boss Blume took the problems within the VW Group into account when designing the company. They wanted to preserve Rivian’s agile culture and “protect” the new company from the VW bureaucracy:
- Leadership: a CTO-CEO from Rivian and an operational co-CEO from VW run the company together. Scaringe and Blume decide directly in the event of problems.
- Preserving Rivian’s culture: “We want to maintain our speed and unbureaucratic decision-making processes,” says Scaringe.
- Separation from the VW Group: The joint venture will be physically and organizationally shielded from the VW “core business”.
- Relocation of Rivian functions: Rivian is transferring the following teams to the new company:
- Development for control units and basic software
- Hardware design
- Software development (operating system to applications)
In future, these teams will work for both Rivian and VW.
It is not yet known whether VW will transfer existing functions to the joint venture.
VW has learned from the past. Group culture and internal politics often hindered the software transformation. The company does not want to repeat this mistake.
The new company is deliberately being kept geographically and organizationally away from VW’s core business. That sounds like a good new approach to me. In any case, I’m keeping my fingers crossed that it works this time!
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