Rivian says different automakers ‘knocking on door’ | finance news
By Abhirup Roy
PALO ALTO, California (Reuters) – A three way partnership between U.S. electric pickup and SUV maker Rivian and Volkswagen is in talks with different automakers about supplying their software program and electrical structure, a senior Rivian government stated on Thursday.
The German automaker agreed in November to invest $5.8 billion within the three way partnership, which can combine superior electrical infrastructure and Rivian’s software program technology for each corporations’ future electric automobiles.
Whereas a three way partnership will give Rivian larger volumes to barter higher provider offers and scale back prices, seen as essential amid a slowdown in EV demand, Volkswagen and doubtlessly different conventional automakers will get fast and easy accessibility to technology and software program they’ve struggled to construct for years.
“I’d say that many other OEMs are knocking on our door,” Rivian Chief Software program Officer Wassym Bensaid stated in an interview, referring to Unique Gear Producers, a phrase used to explain vehicle makers.
Bensaid, who can also be co-CEO of the three way partnership, declined to supply names of the automakers and particulars on what stage the talks have been at.
Rivian’s structure requires fewer digital control items and considerably much less wiring, decreasing vehicle weight and simplifying manufacturing. The technology is core to building automobiles with software program that might be up to date over the air like a smartphone – what the industry calls “software-defined vehicles”, an space the place established automakers are nonetheless operating behind.
“There is demand,” stated Bensaid, including that the precedence till 2027 was to roll out the R2, Rivian’s smaller, less-expensive SUV and to combine the technology in different Volkswagen manufacturers. “Obviously other OEMs are talking to us and we’re trying to figure out how to support that in the future.”
“Any other OEM who wants to make a leap from a technology standpoint, the joint venture today becomes one of the key partners with whom they can make that collaboration,” he stated.
The enterprise is prone to turn into the platform of selection within the Western world other than Tesla, Canaccord Genuity analysts stated in a notice. The three way partnership additionally helps alleviate “a significant chunk of the capital concern” for Rivian, the analysts stated.
(Reporting by Abhirup Roy in Palo Alto, California, and Arsheeya Bajwa in Bengaluru; Enhancing by Peter Henderson and Jamie Freed)
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