Volkswagen Faces Delays With Rivian Software Partnership

Munich, Germany – Volkswagen is experiencing significant challenges with its partnership with Rivian, affecting multiple upcoming electric vehicle models. Reports indicate that models relying on Rivian’s software, including Audi’s Q8 e-tron and the electric A4, are delayed by at least a year, potentially pushing their release to mid- and late-2028. Meanwhile, Porsche’s Giga-SUV K1 may be postponed indefinitely.

This information comes from German Manager Magazin, which gathered insights from sources close to Volkswagen. The partnership intended to help VW close its software gap and included a joint venture named Rivian and Volkswagen Group Technologies, backed by substantial investments.

Since taking over as CEO, Oliver Blume has attempted to streamline Volkswagen’s in-house software division, known as Cariad, which had previously caused delays in launching several vehicles. Blume’s strategy has shifted from solely in-house software development to collaborating with companies like Xpeng and Rivian. However, this new approach has not been without its issues.

Rivian’s software was initially crafted for electric vehicles, not for internal combustion engines (ICE), which Volkswagen is now choosing to retain for longer. The report states that Rivian appears disinterested in modifying its algorithms for ICE vehicles, which could necessitate Cariad’s involvement, leading to further costly delays.

During a recent crisis meeting at the IAA in Munich, Volkswagen’s brand and development leaders planned to reorganize launch schedules, as previous timelines became unfeasible. A decision on which models will launch when and with which software is expected by October 7.

While the joint venture’s initial focus is the Rivian R2, planned for a 2026 release, VW and its brands will only gain complete access to Rivian’s software late in the process. Initial tests are set for this winter, yet the real integration for Audi, VW, and others will occur later. The magazine notes, “The dispute over how much the software can be modified is already underway.”

Currently, the VW ID.1 is expected to be the first group EV equipped with Rivian software by late 2027. Following that, the e-tron models like the Q8 and A4 are likely to experience further delays. For traditional combustion models, Cariad’s software may need extended usage, and an adapted Rivian version for ICE vehicles is anticipated.

Despite the headwinds, reports indicate that a similar venture is progressing well, providing a glimmer of hope amid the challenges facing the Volkswagen-Rivian collaboration.