Alex Oyler’s Post

🚗 Volkswagen is making a bold move in the electric vehicle (EV) market with a $5 billion investment in Rivian 🚗 Rivian are an EV company specialising in SUVs and Utes. This is definitely going to be huge for the Australian EV market, with current limited EV Ute sales in Australia (only 1 out of 21,327 utes sold during February was an electric model). 🔑 Key points: 🔋 This partnership will to enhance Rivian's EV architecture and software, helping it launch more affordable R2 SUVs and planned R3 crossovers by 2026. 🔋 VW is not a big player in the large SUV and pickup segments in the U.S. and it has failed to break through with its crossover electric SUV ID4 🔋 For VW, this move addresses its software challenges and broads its EV portfolio. 🔋 The joint venture is expected to commence in the fourth quarter of 2024. Exciting times ahead for the EV industry and the Australian consumer! Read the full article: https://lnkd.in/eVqYBPQp #EV #SmartCharging #Sustainability #RenewableEnergy #EnergySavings #GreenFuture

Interesting analysis on the announced JV between VW and Rivian, to develop next-generation E/E and Software architectures for vehicles at both companies, expected to start by the end of 2024 VW Group will invest up to $3bn in Rivian directly ($1b per year 2024-2026), upon completion of certain milestones. Two Co-CEOs, one from each company, will lead the JV. The Rivian appointee will also hold CTO title, while the VW appointee will also hold COO title.

"The closest thing to a SDV available in the market today." - Alex Oyler of SBD Automotive. Why would a well-established legacy automaker like Volkswagen Group invest $5b in upstart EV maker Rivian when they have a popular EV platform in their ID models? Consolidation of components - 17 control units to just 7 - giving VW a boost to more efficient EV production. Years after TECH WEEK by a16z's Mark Andreesen said software will eat the world, it's coming for the automotive sector. As elsewhere, it likely won't delete the "hardware" from our lives but it'll make that hardware more effective and useful to its customers. Bring it on, we say. . . . #invehiclepayments #softwaredefinedvehicles #EV #energy #retail #automotive #CX #customerexperience #autodealers #Payments #evcharging #smartcities #SDV

In an industry facing scrutiny, Volkswagen's $5 billion investment in Rivian marks a pivotal moment for the electrification of the US auto sector. Wondering about the rationale behind this move? Here's a breakdown:    **Software Collaboration: VW and Rivian aim to enhance software platforms and user experiences through shared resources. **Access to Technology: Leveraging Rivian's EV advancements, including battery systems and autonomous features, propels innovation. **Market Positioning: This investment bolsters Volkswagen's competitive stance in the growing EV market. **Strategic Partnerships: By collaborating, costs are reduced, risks are mitigated, and innovation is accelerated. This strategic alliance highlights Volkswagen's unwavering dedication to electrification and innovation in the automotive landscape. 🚗⚡ #Volkswagen #Rivian #Electrification #Innovation #evcharging PowerFlex

Strategic deal or an agreement in crisis? Rivian and Volkswagen As the electric vehicle market rapidly evolves, traditional automakers are grappling with new challenges, while startups struggle with scale. A recent discussion in Why Rivian and VW Both Need Each Other highlights the potential game-changing partnership between these two players: 1. Rivian's Financial Pressures Rivian, though known for its innovative approach, is burning through cash fast—losing around $1.5 billion per quarter. The recent pause on their $5 billion Georgia factory has raised concerns of bankruptcy. 2. VW's $5 Billion Lifeline Volkswagen’s investment into Rivian offers financial stability and operational support. For Rivian, this is more than just cash—it’s access to VW’s global supplier network and economies of scale. 3. Software-Defined Vehicles (SDVs): A Competitive Edge Rivian excels in software-defined vehicles, streamlining over-the-air updates and consolidating vehicle control systems. This capability is something VW has struggled to implement effectively, and it may be the key to VW's long-term strategy, especially in the US truck and SUV markets. 4. Industry Implications This partnership isn’t just about survival—it reflects a shift in the auto industry towards more collaborative models between legacy automakers and innovators. Traditional players like VW need to embrace software and new business models to stay relevant, especially in the face of competition from China and Tesla. The future of automotive innovation is being written by partnerships like this. Rivian’s software agility combined with VW’s scale and market presence could set the standard for the next wave of EVs. #EV #AutomotiveInnovation #Partnership #Rivian #Volkswagen #SoftwareDefinedVehicles #FutureOfTransport

Big news: VW is partnering with and investing $5 billion in Rivian. "The deal creates an unusual alliance between the world’s second-largest carmaker and an electric vehicle start-up that has struggled to live up to investors’ expectations that it would achieve the kind of success that made Tesla the world’s most valuable automaker. If successful, the partnership would address weaknesses at both companies. It would provide Volkswagen with the software expertise that auto analysts say it sorely lacks. And Rivian, addition to cash, would benefit from the manufacturing expertise of an automaker that cranks out nearly 10 million vehicles a year from factories around the world." #electricvehicles #ev #evs #innovation #automanufacturing

Rivian Automotive has caught a break thanks to Volkswagen’s backing, but the arduous task of cutting costs has barely begun. I still think the company is toast long-term. Rivian has proved itself as a digital technology company. But it has yet to prove itself as a scale manufacturer, which is key if it is going to remain in business. The electric-truck maker held its first investor day Thursday, two days after a $5 billion deal with Volkswagen went a long way to answering questions about its funding challenges. There was a lot of detail about Rivian’s approach to vehicle electronics and software—the secret sauce that piqued the appetite of the world’s second-largest automaker by sales. Where doubts remain is around its capacity to make EVs profitably at a price that will lure American consumers away from gas engines. This is the technology’s enduring challenge outside of China, one only Tesla has cracked so far. Since its foundation in 2009, Rivian has already accumulated substantially more losses than Tesla ever did. Having floated at $78 a share, Rivian stock closed at $14.47 on Thursday, up 40% this week.

Rivian's latest production forecast and financial results are drawing attention in the EV market. Despite a wider than expected first quarter loss and a cautious 2024 production outlook, Rivian remains optimistic about its guidance. The company's shift in production strategies, including upgrades to reduce costs and introducing more affordable vehicle variants, highlights its commitment to innovation and sustainability. This is of course an interesting space as Rivian and many other OEM's navigate the evolving landscape of electric vehicles and consumer demand. #Rivian #ElectricVehicles #EVs #automotivenews #automotive #autonews

A win-win: Volkswagen to get good software, and Rivian to get much-needed cash? Rivian is a popular EV maker in the US, producing the Rivian R1T; the first electric pickup truck. But: While the vehicle is known for its impressive range of around 400 miles / 650km, off-road capability, and innovative features - Rivian seemed to be in financial trouble, following a successful 2021 IPO. As we covered in April (https://lnkd.in/gfit5kcJ), the company is at risk of running out of money in a few years time. The company’s current market cap reflects the risk of a potential bankruptcy down the road: in 2021 RIvian was valued at $150B: but a week ago, it was down to $10B. This week, things changed for the better. Volkswagen announced a joint venture with Rivian, in which the German automaker provides $5B of capital, and in return, Rivian’s software powers Volkswagen cars. This partnership seems like an ideal solution to both company’s problems. Rivian has great vehicles and software, but needs money. Volkswagen has plenty of cash, but its software is known to be terrible and buggy (e.g. https://lnkd.in/ddpnhe44), to the point that it costs the company customers. I previously test drove a Volkswagen EV, the ID3 model, and its unresponsive software – alongwith reviews stating the same – was enough to not spend more time evaluating it. This must be what a “win-win” looks like! Congrats to Rivian; and hopefully Volkswagen’s customers also benefit from this venture. --- This was one of many topics from today's The Pulse issue in The Pragmatic Engineer. Subscribers can read the full issue here: https://lnkd.in/gDVSg64b

Electric vehicle maker Rivian slashed its annual production forecast and delivered fewer-than-expected cars in the third quarter as it grapples with a part shortage. Moreover, slowing demand for battery-powered cars is weighing on Rivian's ambitious expansion plans as consumers opt for cheaper hybrids in an uncertain economy. The company has working to aggressively cut costs as it looks to turn its first profit in the last three months of the year. To do so, it shut down its factory in April for modifications which will help it cut down the material costs of producing its electric SUVs. Read my full story for Reuters below: