Volkswagen and Rivian Joint Venture Cleared by German Competition Authority

Germany’s Volkswagen and U.S. electric car maker Rivian Automotive are poised to form a joint venture, according to an announcement by the German competition authority on Monday. The Bundeskartellamt, Germany’s Federal Cartel Office, has given the green light to the partnership, asserting that there are “no serious competition problems to be feared.”

Andreas Mundt, head of the Bundeskartellamt, stated that the transaction was cleared under merger control as it was “not expected to significantly impede effective competition.” He added that this conclusion applies “regardless of whether the relevant market is considered to consist of the E/E architecture (electrical/electronic architecture) as a whole or of various sub-systems and sub-services. There will still be a sufficient range of services available to car manufacturers to build E/E architectures.”

At the end of June, Volkswagen CEO Oliver Blume and Rivian founder RJ Scaringe solidified a comprehensive software alliance aimed at creating a new E/E architecture. This architecture will leverage Rivian’s existing software and electrical systems as a foundational technology platform for software-defined vehicles. The new development is slated for integration into Volkswagen’s upcoming SSP electric platform, expected to debut in 2028.

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For Volkswagen, this joint venture represents a strategic attempt to address and overcome its well-documented software challenges with the Cariad software unit. However, access to Rivian’s cutting-edge technology will come at a significant investment. Volkswagen has announced plans to invest up to $3 billion in Rivian and up to $2 billion in the joint venture by 2026, contingent upon achieving certain milestones.

The German competition authority’s clearance removes a significant hurdle, with officials noting “no reason for concern that competition in innovation in the field of E/E architecture will be impeded to a significant extent.”

This partnership is seen as a crucial step for both companies, potentially accelerating the development of advanced EV technologies and strengthening their positions in the rapidly evolving automotive market.

Source: Electrek