Rivian and Volkswagen set sights on selling EV tech to rivals
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As global electric vehicle demand shows signs of volatility, Rivian Automotive and Volkswagen are aligning their strategic priorities around a less conventional asset: the technology under the hood. The two companies, through their joint venture RV Tech, are collaborating on a new scalable software and electrical platform that could eventually be licensed to other carmakers.
The platform, still under development, is expected to debut in Rivian’s R2 SUV early next year, followed by Volkswagen’s compact ID. Every1 in 2027. Both companies have said the system will underpin vehicles from Scout Motors and Audi as well. However, the broader goal is to engineer a software-first vehicle architecture capable of being sold to competitors, creating a new revenue stream and offering a viable solution to common challenges across the automotive industry.
Wassym Bensaid, Rivian’s head of software and co-chair of RV Tech, called it a problem-solving opportunity for the sector. Speaking to journalists at a recent event in Palo Alto, Calif., Bensaid explained that the venture was not solely focused on internal needs but also on the potential to offer a modular, cost-efficient solution to others. “That could become an opportunity,” he said.
A scalable architecture for a shifting market
For Rivian, the alliance provides an essential financial buffer. While the electric vehicle startup remains well regarded for its engineering, it has yet to reach profitability and is navigating a more cautious investment environment. Volkswagen, on the other hand, brings scale, infrastructure and a legacy brand portfolio but has struggled with software execution in its own EV lineup.
Volkswagen’s early efforts to build its software division, Cariad, were hampered by delays and performance issues, holding back the rollout of its ID models and diminishing consumer confidence. By integrating Rivian’s approach to centralized computing, which simplifies the number of control units and wiring across the vehicle, VW hopes to close the performance gap with Tesla and fast-rising Chinese rivals like BYD.
The architecture RV Tech is building reflects a growing industry shift toward zonal vehicle platforms. Instead of assigning numerous microcontrollers to individual tasks, zonal designs consolidate functions into a few central computers located in different parts of the car. This reduces weight, cost and development time while enhancing upgradeability and consistency in user experience.
The joint venture has now passed its first development milestones and will begin cold-weather testing in early 2026 using prototype vehicles from Audi, Scout and VW. The vehicles will serve as benchmarks for assessing system performance under extreme conditions. The goal is to validate the platform’s reliability across multiple brands and market segments.
The business model behind the technology
As legacy carmakers and EV startups alike attempt to balance innovation with cost control, modular architectures like the one RV Tech is developing may offer a path forward. The ability to license the platform, Bensaid noted, opens the door to a revenue model that is more aligned with the high-margin profile of technology firms, rather than traditional automakers. “It is a very different ballgame,” he said.
The timing is strategic. Volkswagen faces pressure in multiple markets. In the United States, it must navigate the complexities of import tariffs and shifting tax credit rules. In China, once its strongest growth market, deliveries are slipping in the face of intense local competition. In Europe, economic stagnation and consumer skepticism are dampening EV adoption. A modular, scalable platform may allow VW to produce and update vehicles faster, lowering development costs and improving consumer appeal.
The ID. Every1, expected to retail for about $23,000, represents an aggressive attempt to capture the entry-level EV market in Europe. Positioned as an affordable alternative to Chinese imports, it will be one of the first models outside Rivian’s lineup to adopt the RV Tech architecture. This move signals Volkswagen’s willingness to rely on external partnerships to accelerate its transition, a shift from past tendencies to build internally at all costs.
A broader vision for the automotive industry
Rivian, for its part, will use the platform to streamline development and production of the R2 series, its next-generation electric SUV aimed at a broader market segment. The company has said the R2 will serve as the first real test of how well RV Tech’s centralized system performs at scale.
While the platform’s primary function is to support battery-electric vehicles, Carsten Helbing, co-chair of RV Tech and a VW executive, said the architecture could eventually be adapted for hybrid and combustion-engine vehicles. That flexibility, he added, could help manufacturers bridge the transition period between fossil fuels and full electrification without duplicating development efforts.
Volkswagen has previously licensed platforms to other automakers, including Ford and Mahindra, but this effort differs in its emphasis on software and digital control. The joint venture reflects a broader redefinition of what it means to be an automotive company in an era where code and connectivity are becoming as crucial as drivetrain and design.