Is VW-Rivian Romance A Match Made in Electric Heaven?
Volkswagen has truly fallen head over heels for that electric upstart, Rivian. Forget roses and chocolates, we're talking a cool $5.8 billion investment and a whole lotta shared tech. Now, I'm as excited as the next guy about the electric revolution, but even I have to raise an eyebrow at this whirlwind romance. Is this a match made in electric heaven, or are we about to witness a spectacular combustion of corporate cultures?
VW, in all its German glory, is basically playing sugar daddy to young Rivian. They're talking about sharing parts, buying stuff in bulk (because who doesn't love a good Costco run?), and generally helping Rivian navigate the cutthroat world of EV production. It's like watching a seasoned CEO take a wide-eyed intern under their wing, except with billions of dollars and the future of transportation at stake.
Image Credit: Rivian.
Rivian isn't just getting a free ride. They're actually leading the charge on developing VW's next-generation electrical architecture. You know, the brains of the whole operation. Apparently, Rivian's whiz kids have figured out how to streamline the whole shebang, going from a ridiculous 100 control units down to a lean, mean, seven-unit system.
This new tech is set to debut in some pretty swanky rides, including Porsche's upcoming seven-seat K1 SUV and the next-gen VW Golf. Yes, the beloved Golf is going electric, and it's all thanks to Rivian's magic touch. Of course, VW's resurrected Scout brand will also get a taste of the action, with its rugged Terra pickup and Traveler SUV set to share some of Rivian's DNA.
And just when I thought this love story couldn't get any juicier, the old administration decided to throw a $6.6 billion loan Rivian's way. The loan will help to build a massive new Rivian factory in Georgia, capable of manufacturing 400,000 electric SUVs and crossovers a year. I'm all for creating jobs and saving the planet, but there's a tiny part of me that feels this whole thing is a bit...rushed.
Image Credit: Scout Motors.
Rivian is still a relatively new player in the EV game. They've had their fair share of production hiccups and supply chain woes. Can they really handle the pressure of building hundreds of thousands of vehicles a year while simultaneously revolutionizing VW's electronics? Would you ask a rookie chef to cater a wedding for 1,000 people while also inventing a new type of souffle? It's a big ask, and with VW pouring more and more money into Rivian - is there a possibility of VW taking over the startup? And benefiting from the loan in a clever way? Maybe I read too much into it.
I'm just being a grumpy old gearhead. I believe this unlikely partnership will actually work out. I can see Rivian becoming the Apple of the automotive world. And VW will become their trusty Intel, supplying the chips that power their electric dreams. But there's always the possibility it'll all go up in smoke, leaving both companies scrambling to pick up the pieces. The auto industry is cruel - Canoo just found that out.
