I think they mean that Volkwagen will be able to license Rivians technology after the JV is established earliest December 2024. So Volkswagen will get up to speed with Rivians tech immediately after the partnership is formed and then they will develop together new technologies.
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True.
I just checked the software progress for Audi and it looks like it entered into a partnership with Google Android Automotive years ago. Also, we already have reviews for the two upcoming models. That means they are ready and deliveries should still go on as scheduled.
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- The technology feasibility test was conducted by over 30 engineers who used a sample of Audi models shipped to Rivian’s facility in California, Reuters reported citing people familiar with the matter.
- Reuters sources say the talks began in August last year.
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I=5
The German Cartel office has cleared the formation of a joint venture between Volkswagen and Rivian.
"The project does not raise any concerns in this respect, nor does it raise any other serious competition concerns,” Andreas Mundt, President of the Bundeskartellamt said.
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I=4
- Handelsblatt has reported that Volkswagen is postponing the launch of Tritinity project from 2026 to 2032, citing unnamed sources.
- The newspaper pointed out that CEO Oliver Blume said the delayed launch is due to the firm’s aim to avoid repetition of previous software issues.
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I=4
- Following the alleged postponement of Trinity project to 2032, Volkswagen is said to be planning to bring forward the launch of an electric Golf.
- The EV Golf is expected in 2029 or earlier and will be based on Scalable Systems Platform (SSP) probably developed by the Rivian Joint Venture.
- Scalable Systems Platform (SSP) is expected to support level 4 autonomous driving.
- 289,000 units of the ICE Golf were delivered worldwide in 2023.
https://europe.autonews.com/automakers/vw-delays-trinity-sdv-its-tesla-rival-2032
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I=2
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In an interview with Frankfurter Allgemeine Sonntagszeitung, Thomas Schmall, CEO of Volkswagen Group Technology said their battery capacity target is flexible.
“Our goal is realistic, but it is not set in stone. Building battery cell factories is not an end in itself. The expansion of the factories will depend on how the market for electric cars develops,” he said.
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Powerco plans to produce 200 gigawatt hours of battery capacity by 2030.
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I=3
- Xpeng co-president Brian Gu told CNBC that hundreds of Volkswagen employees are spending time at Xpeng learning about the startup’s technology.
- He pointed out that the EVs being developed with Volkswagen will be different from Volkswagen’s or Xpeng’s existing models since they will come with better range, charging, driving and luxury features.
I=5
- Olaf Scholz’s cabinet has approved another incentive for corporate EV fleets amounting to €465 million annually on average between 2024 and 2028.
- The new regulations still need backing from lawmakers.
I=4
Only one of the two production lines at Powerco’s Salzgitter plant will be build as the company fights costs
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Volkswagen’s Powerco will only build one of the two planned production lines at its Salzgitter plant in Germany as the company tries to cut costs.
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The plant has a capacity of 20 gigawatt hours.
“The further expansion of production capacities will be driven forward flexibly and in line with demand,” a Volkswagen spokesperson commented.
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An annual capacity of 40 gigawatt hours was targeted for the Salzgitter plant in future and was expected to create 5,000 jobs. Production at the plant is set to begin in 2025.
I=5
Volkswagen stops production of ID.4s at Chattanooga plant following a recall of around 100,000 units.
- Volkswagen stopped the production of ID.4s at Chattanooga plant in United States following around 100,000 units recall due to malfunctioning door handles.
- The company said roughly 200 employees will temporarily be suspended as a result of the halt in production.
- According to the company, the plant has capacity to produce up to 7,000 ID.4s per month (84,000 per annum) but was only producing around 3,500 units per month in Q3 2023.
- The company said the production halt could last until early next year as it works to solve the issue.
Assessment
The expected 10,000 impact on U.S deliveries is small. However, it’s not good that Volkswagen is taking such long to fix the issue which appears to be minor.
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I=8
Volkswagen seals deal with Rivian, increases investments in the JV by $800 million
- Volkswagen and Rivian have launched their joint venture which was announced 12 weeks ago.
- Volkswagen has increased its planned investments in the JV by $800 million to $5.8 billion since more cars will get the new software than originally planned i.e the architecture will now be used in all relevant vehicle segments.
- Volkswagen has already made an investment of $1 billion in the form of convertible note.
- At closing of the JV, Volkswagen will invest around $1.3 billion euros as background for IP licenses and 50% equity stake in the JV.
- The other $3.5 billion investment will come at future dates based on defined milestones and will be in the form of f equity, a convertible note, and debt.
- The first models based on the JV architecture will roll off the production lines in early 2027.
- Volkswagen said they already successfully deployed Rivian’s architecture and software in a drivable demonstrator vehicle.
Assessment
Originally, Volkswagen planned to use the architecture in only large cars. As such, its decision to now use it in all relevant vehicle segments including subcompact cars shifts the strategy further away from the loss-making Cariad. According to Manager Magazin, by investing in Rivian, Oliver Blume is initiating the liquidation of Cariad. This could be true given the declining relevance of Cariad.
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Rivian’s architecture could reduce wiring in Volkswagen vehicles by up to 50%, OTA updates will be made possible- S&P Global writes
- According to Richard Dixon, senior principal analyst, E/E and Semi, S&P Global Mobility, Rivian’s architecture can reduce wiring in Volkswagen vehicles by up to 50%.
- Dixon points out that Rivian’s approach is similar to that of Tesla, hence its hardware is better or on a par with that of Rivals outside China.
- Manuel Tagliavini, principal research analyst, Software, S&P Global Mobility points out that Rivian’s software architecture provides a more efficient and flexible deployment of new functions and features through over-the-air (OTA) updates, compared to what Cariad was able to achieve (min 4:50).
- The analysts pointed out that Rivian’s deal gives Volkswagen a competitive advantage in the race to leverage software-defined-vehicles (SDVs).
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Volkswagen R&D boss Kai Grünitz said the benefits of the Rivian technology will be felt before the arrival of Scalable Systems Platform (SSP)
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He praised the Rivian architecture as being faster and scalable.
“They have a good electronic architecture, it’s scalable, has best in class over-the-air update performance, and [they have] different processes for development that are faster than a traditional OEM," he said. “They’re closer to what we see in China."
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I=5
Volkswagen missed US tax credit list
- Volkswagen missed US tax credit list due to tougher rules that took effect last week.
- Its ID.4 lost its full $7,500 tax credit while Audi Q5 plug-in-hybrid SUV, which had received $3,750 tax credit, also missed out.
Assessment
Around 38,000 units of ID.4 were sold in US in 2023. Hence, a lose of $7,500 ID.4 tax credit will cost the company around $285 million (38,000x7,500) in incentives.
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I=5
Volkswagen partners with Xpeng to construct fast-charging networks in China
- Volkswagen and Xpeng have expanded their partnership to include the introduction of fast-charging networks in China.
- The joint venture will construct 20,000 ultra-fast charging stations in 420 Chinese cities.
- In March 2024, the two companies entered into a partnership to bring two new EVs to the Chinese market by 2026.
- The electric models will be based on the CEA electronic platform, which uses fewer control units leading to significant cost savings, rivaling the likes of Tesla.
I=3
- Volkswagen plans to expand its partnership with Rivian, moving beyond the existing software partnership.
- The new partnership entails options such as sharing modules and pooling purchasing volumes.
I=6
Other OEMs are interested in Rivian’s architecture
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Rivian said other automakers are interested in their architecture.
“I’d say that many other OEMs are knocking on our door,” Rivian Chief Software Officer Wassym Bensaid said.
“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 said.
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Canaccord Genuity analysts believe that the venture is likely to become a platform of choice in the Western world apart from Tesla.
I=5
- Volkswagen brand CEO, Thomas Schäfer said the latest infotainment rolled out in the ID.3, ID.4, ID.7 and others is “perfect” and “state of the art”.
- He added that the architecture being build with Rivian will support at least 10 brands.