VW's software partnership with Rivian clears investment hurdle

BERLIN, March 27 (Reuters) - ‌Volkswagen's software ​partnership ​with Rivian, a cornerstone of CEO Oliver Blume's turnaround strategy for ‌the German auto group, has passed a ⁠key milestone, bringing the U.S. partner closer to its ‌next tranche of ‌funding.

Winter tests of the first vehicles using the software have been successfully completed, Volkswagen ​said on Friday.

"We're accelerating towards the future," Blume said.

The joint venture aims to ⁠develop a software platform to underpin a model revamp across Volkswagen's ​core brand as well as its U.S. pickup truck business Scout and ​premium subsidiary Audi.

By joining ‌forces with Rivian, a California-based maker of electric vehicles, Blume sought outside ⁠help following years of problems at Volkswagen's own software arm Cariad.

The German carmaker is under ⁠pressure to catch up in a race with data ​and software-savvy players like Tesla and China's BYD.

In November 2024, Volkswagen agreed to pay $5.8 billion under the ‌collaboration by 2027.

This included a $1-billion tranche expected this year upon completion of "technological ‌milestones".

A spokesperson said at this time the ⁠company would not ‌comment on the ​details of the transaction.

(Reporting by Rachel More and Christina AmannEditing by Ludwig ‌Burger)

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