Storm Clouds Are Gathering Over The Volkswagen–Rivian Bromance

Assist CleanTechnica’s work via a Substack subscription or on Stripe.

Volkswagen Group simply can’t appear to catch a break in the case of software program. It’s actually good at manufacturing vehicles and it’s fairly darn good at battery electrical powertrains, however it has stumbled repeatedly in the case of making vehicles which might be the “computer systems on wheel” first delivered to market by Tesla in 2012 when it launched the Mannequin S.

When the Volkswagen ID.3 first appeared, it was plagued with software program glitches that, in keeping with a number of reviews, meant a lot of the early manufacturing vehicles had been saved in out of doors heaps throughout Germany ready for software program updates that may make them at the very least drivable, even when a number of the controls and show screens didn’t operate as supposed.

The issues weren’t confined to simply electrical autos. For at the very least the previous decade, each producer has been tripping throughout itself to convey the “laptop on wheels” vibe to their merchandise, even those with infernal combustion engines. That meant the issues at Volkswagen Group affected all its merchandise, together with these from Porsche, Audi, and Bentley. The purchaser of an ID.3 is likely to be tolerant of some glitchy software program, however the purchaser of a Porsche wouldn’t be so forgiving.

And so, Volkswagen created CARIAD, a software program division to rule all of them, however it was no extra profitable at fixing the problems than the Volkswagen divisions had been. Some senior executives received tossed overboardhowever nonetheless the issues endured. And so Volkswagen did one thing very uncharacteristic — it appeared outdoors the corporate for assist and determined to hyperlink up with Rivian, which was having some success at making software program platforms for its autos that really labored.

Volkswagen Turns To Rivian

Initially, Volkswagen was stated to have pledged $5 billion to Rivian to drag its digital chestnuts out or the hearth. Late final 12 months, there have been reviews that VW had thrown one other $800,000 into the pot.

However in keeping with Germany’s Supervisor Magazinthe connection between Rivian and Volkswagen is experiencing some turbulence. “Volkswagen is reportedly encountering intensive issues in its partnership with Rivian. Because of this, electrical fashions supposed to run on Rivian software program are apparently delayed. Moreover, Rivian’s algorithms can not merely be transferred to inside combustion engines, which Volkswagen now appears more likely to hold within the line-up for longer.”

Highly positioned sources stated Audi’s Q8 e-tron SUV and A4 e-tron could also be delayed by at the very least a 12 months, transferring their launch date again to mid or late 2028. The debut of Porsche’s K1 SUV, which is meant to be a battery electrical mannequin positioned above the Cayenne due in showrooms by late 2027, is now postponed indefinitely.

What’s most stunning in regards to the report is a suggestion that CARIAD, bloodied and bruised by fixed company infighting and upheavals, could also be resurrected as Volkswagen Group CEO Oliver Blume tries to search out somebody — anybody — who can remedy the corporate’s ongoing software program points. Issues should be fairly intense within the C suite in Wolfsburg for that to occur.

Volkswagen Faucets The Brakes On Electrical Autos

To be honest, there have been reviews this week that Volkswagen Group — and Porsche specifically — is rethinking its electrification technique. Porsche has been hammered by US tariffs. Because the US is its largest export market, and for the reason that present administration would somewhat eat floor glass than carry a finger to maneuver the EV revolution alongside, Porsche now says it’s going to hold cranking out vehicles with gasoline (and perhaps diesel) engines far longer than deliberate.

When Volkswagen and Rivian determined to hitch forces, they created a three way partnership named Rivian and Volkswagen Group Applied sciences. For Volkswagen, the initiative represented a recent try to shut its software program hole. Each corporations supposed to make use of the software program for their very own fashions primarily based both on Rivian’s zonal digital structure or the three way partnership’s extra enhanced model that working collectively was anticipated to create.

Supervisor Magazin explains how Oliver Blume, since taking up as CEO of Volkswagen Group, has cleared up chaos at CARIAD, which was referred to as a bottleneck that delayed a number of automotive launches by years. Blume shifted from a totally in-house software program improvement division to a accomplice technique. For its companions, Volkswagen selected Rivian and Xpeng. Now it seems a type of partnerships has created new issues.

Volkswagen is now saying it’s going to have extra combustion fashions throughout all divisions. However Rivian’s software program was by no means designed for vehicles with inside combustion engines and reportedly Rivian — which builds battery electrical autos solely — has little curiosity in increasing into the ICE house.

Interim Options Wanted

Supervisor Magazin says, “Interim options are wanted. CARIAD could even should step in. This triggers new multi-billion-euro delays throughout the group, in some circumstances by a number of years.” In a disaster assembly on the Munich auto present just lately, model and improvement heads met to reorganize launch plans, as earlier schedules had been now not viable. On October 7, 2025, Volkswagen is anticipated to announce which new fashions will launch when and with what software program.

One other situation is that Volkswagen workers tasked with coordinating with Rivian say they’re being marginalized by Rivian, whose main focus is on getting the R2 into manufacturing. That car is anticipated to go on sale in late 2026 and can supposedly embody the software program collectively developed by the 2 corporations.

Although preliminary checks with Rivian modules are anticipated this winter, they’ll solely “correctly start” for Volkswagen, Audi, and different manufacturers after the Rivian portion of the testing is accomplished, in keeping with the sources. Solely after the code bundle is accomplished will or not it’s built-in and tailored to be used in vehicles manufactured by Volkswagen Group.

“The dispute over how a lot the software program could be modified is already underway,” the sources stated. Audi and Porsche reportedly are inquisitive about most customization functionality whereas Rivian prefers simplicity. Supervisor Magazin asks, “How can this workforce fulfill the wants of ten manufacturers?”

ID.1 Will Be First

As far as anybody outdoors the corporate is aware of, the ID.1 would be the first EV from Volkswagen with Rivian software program. It’s scheduled to reach by late 2027. The primary Audis to make use of the Rivian software program bundle would be the Q8 e-tron and A4 e-tron, however each are more likely to face additional software-related delays.

As soon as the Rivian software program packages can be found, they should be “tailored for the fashions, custom-made, and flawlessly adjusted.” The A4 e-tron was initially scheduled for launch in 2023 however is now deliberate for late 2028. “Builders are fed up,” Supervisor Magazin reviews.

To equip the retained combustion fashions with trendy software program, CARIAD software program could should be used longer than deliberate. A Rivian software program model tailored for ICE autos can be probably. Collectively, the 2 approaches may value the group a further €6.5 billion.

There may be one ray of sunshine in all this digital gloom. The three way partnership with Xpeng is alleged to be progressing nicely in keeping with the sources. We surprise if Volkswagen is having purchaser’s regret due to its resolution to hitch its wagon to Rivian’s star?