Storm Clouds Are Gathering Over The Volkswagen–Rivian Bromance

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Volkswagen Group simply can’t appear to catch a break in relation to software program. It’s actually good at manufacturing vehicles and it’s fairly darn good at battery electrical powertrains, but it surely has stumbled repeatedly in relation to making automobiles which are 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, based on a number of studies, meant many of the early manufacturing automobiles have been saved in out of doors tons throughout Germany ready for software program updates that might make them a minimum of drivable, even when a number of the controls and show screens didn’t operate as meant.

The issues weren’t confined to simply electrical autos. For a minimum of the previous decade, each producer has been tripping throughout itself to deliver the “pc 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 could 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, but it surely was no extra profitable at fixing the problems than the Volkswagen divisions have been. Some senior executives bought tossed overboard, however nonetheless the issues persevered. And so Volkswagen did one thing very uncharacteristic — it regarded exterior 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 truly labored.

Volkswagen Turns To Rivian

Initially, Volkswagen was mentioned to have pledged $5 billion to Rivian to tug its digital chestnuts out or the hearth. Late final yr, there have been studies that VW had thrown one other $800,000 into the pot.

However based on Germany’s Supervisor Magazin, the connection between Rivian and Volkswagen is experiencing some turbulence. “Volkswagen is reportedly encountering in depth issues in its partnership with Rivian. In consequence, electrical fashions meant to run on Rivian software program are apparently delayed. Moreover, Rivian’s algorithms can not merely be transferred to inner combustion engines, which Volkswagen now appears more likely to hold within the line-up for longer.”

Highly positioned sources mentioned Audi’s Q8 e-tron SUV and A4 e-tron could also be delayed by a minimum of a yr, shifting 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 concerning 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 seek out somebody — anybody — who can resolve the corporate’s ongoing software program points. Issues have to be fairly intense within the C suite in Wolfsburg for that to occur.

Volkswagen Faucets The Brakes On Electrical Automobiles

To be truthful, there have been studies this week that Volkswagen Group — and Porsche particularly — is rethinking its electrification technique. Porsche has been hammered by US tariffs. Because the US is its largest export market, and because the present administration would somewhat eat floor glass than elevate a finger to maneuver the EV revolution alongside, Porsche now says it can hold cranking out automobiles 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 contemporary try to shut its software program hole. Each corporations meant 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 on as CEO of Volkswagen Group, has cleared up chaos at CARIAD, which was referred to as a bottleneck that delayed a number of automobile launches by years. Blume shifted from a totally in-house software program improvement division to a associate 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 can have extra combustion fashions throughout all divisions. However Rivian’s software program was by no means designed for automobiles with inner combustion engines and reportedly Rivian — which builds battery electrical autos completely — has little curiosity in increasing into the ICE area.

Interim Options Wanted

Supervisor Magazin says, “Interim options are wanted. CARIAD could even must step in. This triggers new multi-billion-euro delays throughout the group, in some instances 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 have 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 subject is that Volkswagen workers tasked with coordinating with Rivian say they’re being marginalized by Rivian, whose major focus is on getting the R2 into manufacturing. That automobile is anticipated to go on sale in late 2026 and can supposedly embrace the software program collectively developed by the 2 corporations.

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

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

ID.1 Will Be First

As far as anybody exterior 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 have to 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 studies.

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 also be probably. Collectively, the 2 approaches might value the group an extra €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 based on the sources. We marvel if Volkswagen is having purchaser’s regret due to its choice to hitch its wagon to Rivian’s star?