Rivian says other automakers ‘knocking on door’ about tech from VW joint venture

By Abhirup Roy

PALO ALTO, California (Reuters) -A joint enterprise between U.S. electrical pickup and SUV maker Rivian (NASDAQ:) and Volkswagen (ETR:) is in talks with other automakers about supplying their instrument and electrical architecture, a senior Rivian govt acknowledged on Thursday.

The German automaker agreed in November to make investments $5.8 billion in the joint enterprise, which is ready to integrate developed electrical infrastructure and Rivian’s instrument abilities for both companies’ future electrical vehicles.

While a joint enterprise will give Rivian higher volumes to barter better dealer affords and decrease prices, seen as severe amid a slowdown in EV count on, Volkswagen and potentially other passe automakers will salvage snappy and uncomplicated salvage precise of entry to to abilities and instrument they contain got struggled to impact for years.

“I would utter that many other OEMs are knocking on our door,” Rivian Chief Instrument (ETR:) Officer Wassym Bensaid acknowledged in an interview, referring to Customary Instruments Producers, a phrase damaged-all of the fashion down to teach vehicle makers.

Bensaid, who will more than doubtless be co-CEO of the joint enterprise, declined to assemble names of the automakers and tiny print on what stage the talks were at.

Rivian’s architecture requires fewer digital preserve a watch on gadgets and severely much less wiring, reducing vehicle weight and simplifying manufacturing. The abilities is core to building cars with instrument that will doubtless be up thus a long way over the air treasure a smartphone – what the industrial calls “instrument-defined vehicles”, an dwelling where established automakers are peaceable running unhurried.

“There is count on,” acknowledged Bensaid, adding that the precedence until 2027 used to be to roll out the R2, Rivian’s smaller, much less-expensive SUV and to integrate the abilities in other Volkswagen manufacturers. “Obviously other OEMs are speaking to us and we’re seeking to identify guidelines on how to beef up that in due route.”

“Every other OEM who needs to impact a jump from a abilities standpoint, the joint enterprise nowadays turns into surely one of the most essential companions with whom they will impact that collaboration,” he acknowledged.

The enterprise is liable to turn into the platform of decision in the Western world except for Tesla (NASDAQ:), Canaccord Genuity analysts acknowledged in a conceal. The joint enterprise also helps alleviate “a most critical chunk of the capital content” for Rivian, the analysts acknowledged.