Volkswagen is grappling with difficulties in its software partnership with U.S. electric vehicle maker Rivian, with several planned electric models facing delays of at least a year, according to a report by German business magazine Manager Magazin.
The software joint venture, Rivian and Volkswagen Group Technologies, was set up in mid-2024 as part of Volkswagen’s multibillion-euro effort to resolve longstanding challenges with its in-house software unit, Cariad. The partnership aims to integrate Rivian’s zonal electronic architecture into both Rivian and Volkswagen Group models.
However, software designed primarily for electric vehicles has proven difficult to adapt to Volkswagen’s internal combustion engine (ICE) models, which the company now expects to keep in production longer than initially planned. This has raised the prospect of interim solutions, including greater reliance on Cariad software, potentially leading to further cost overruns and delays.
According to Manager Magazin, Audi’s Q8 e-tron and the electric A4 will be delayed to mid- and late 2028 respectively, while Porsche’s K1 electric SUV has been postponed indefinitely. Volkswagen is expected to finalise revised model launch plans in October, the report said.
Early software testing using Rivian modules is expected this winter, but Volkswagen brands will not gain full access to Rivian’s code until later, delaying integration. Disagreements have also reportedly emerged over the extent to which Volkswagen brands can customise Rivian’s software, with luxury marques such as Audi and Porsche seeking greater flexibility.
The first Volkswagen Group model expected to launch with Rivian software is the VW ID.1, targeted for late 2027. Subsequent Audi models including the Q8 e-tron and A4 e-tron are likely to follow, though their schedules remain uncertain.
Volkswagen may also extend the use of Cariad software for ICE models or develop a Rivian-based version adapted to combustion vehicles. Together, these measures could add as much as €6.5 billion in costs, the report said.
In contrast, Volkswagen’s joint venture with Chinese automaker Xpeng is reportedly progressing more smoothly, according to the magazine.