VW And Rivian Eye Licensing EV Tech To Rivals As Post-Tax Credit Market Reshapes Industry

Volkswagen and Rivian are exploring opportunities to license their jointly-developed electric vehicle platform to competing automakers, marking a strategic shift that could transform the $5.8 billion partnership from an exclusive collaboration into an industry-wide technology provider.

The announcement came during a media event in Palo Alto on November 12 as the joint venture known as RV Tech celebrated its one-year anniversary. Wassym Bensaid, Rivian’s software chief and RV Tech co-chair, told journalists the partnership is keeping communication open with third parties about the scalability of its platform.

From Exclusive Partnership To Industry Platform

“We’re solving a problem for the larger automotive industry,” Bensaid said. “That could become an opportunity” for others as well, he added.

The timing is notable. Just six weeks after the September 30 expiration of the $7,500 federal EV tax credit triggered widespread industry layoffs and production cuts, both companies are positioning their technology as a potential revenue stream beyond vehicle sales.

The licensing opportunity represents “a very different ballgame” and “a very different margin profile from a business standpoint than making cars,” according to Bensaid’s comments.

The platform is designed to be scalable across vehicle sizes and segments in Western markets. RV Tech uses zonal architecture similar to systems deployed by Tesla, BYD, and Xiaomi, which requires fewer individual controllers to oversee a wider range of functions across the vehicle’s front, central, and rear sections. This approach reduces costs by cutting the number of computers and wiring needed.

Proven Track Record Of Technology Licensing

Volkswagen has experience licensing its technology to competitors. Ford Motor Company and Mahindra & Mahindra previously used the German automaker’s first-generation platform for their own electric models, according to multiple reports.

“There’s no Rivian versus VW versus Audi,” Bensaid explained at the event. “It’s Rivian and Audi and VW and potentially in the future other OEMs because of the breadth and scalability of the technology solution that we’re building.”

RV Tech co-chair Carsten Helbing from Volkswagen Group added that while the joint venture prioritizes ramping up electric models, the technology could potentially be adapted for combustion-engine vehicles as well. This represents the first public acknowledgment that the platform originally marketed as purpose-built for EVs could power conventional gas engines.

Winter Testing And Production Timeline

The venture plans to begin testing the system in winter conditions during the first quarter of 2026 on Audi, Volkswagen, and Scout models. Among the test vehicles is the Volkswagen ID.EVERY1, which has been undergoing evaluation at RV Tech’s facilities in Palo Alto and Irvine, California, since summer 2025.

The ID.EVERY1, targeting a starting price of €20,000 (approximately $23,000), will be the first Volkswagen Group vehicle to feature the RV Tech software and electrical architecture when it launches in 2027. Rivian’s R2 sport utility vehicle will debut the technology earlier, with production scheduled for the first half of 2026.

RV Tech has grown to employ more than 1,500 people worldwide across development sites in California, with three additional locations in development in North America and Europe. The joint venture recently opened a new office in Berlin to strengthen collaboration with Volkswagen Group brands in Europe.

Strategic Context Behind The Licensing Push

The licensing exploration comes as both companies navigate challenging market conditions. Volkswagen is grappling with tariffs in the United States, shrinking deliveries in China, and muted demand in Europe. The automaker is considering closing factories in Germany for the first time in its 87-year history while implementing 10% wage cuts amid labor disputes.

For Rivian, the joint venture provides crucial financial support as the company races to launch its more affordable R2 SUV. The electric vehicle maker cut approximately 600 jobs in late October—roughly 4.5% of its workforce—marking the company’s third workforce reduction in four months. Rivian delivered 13,200 vehicles in the third quarter, up 32% year-over-year, but continues to face quarterly losses exceeding $1 billion.

Volkswagen’s $5.8 billion investment in the partnership was structured in phases. The German automaker provided an initial $1 billion in June 2024 via convertible note, followed by $1.3 billion for intellectual property licenses and a 50% equity stake when the joint venture officially launched in November 2024. The remaining $3.5 billion will come through 2027 in the form of equity, convertible notes, and debt, tied to specific milestones.

EVXL’s Take

Let’s connect the dots here. When Volkswagen and Rivian announced this partnership back in June 2024, it was framed as VW’s electrification savior—the German giant admitting its Cariad software division had failed spectacularly and needed to license expertise from an American startup. Fast forward to today, and suddenly this “exclusive” EV technology platform is being pitched to other automakers while simultaneously being positioned as compatible with gas engines.

The timing tells you everything. Six weeks ago, the federal EV tax credit expired, eliminating $7,500 in subsidies that had been propping up demand. We’ve watched the industry crater since then—GM laid off 3,300 EV workers and idled $2 billion battery plants, Ford indefinitely halted F-150 Lightning productione October EV sales collapsed 24% in a single month. Rivian itself has now cut jobs three times since June.

When the market is flush with government subsidies, automakers talk about exclusive partnerships and all-electric futures. When those subsidies disappear and reality sets in, suddenly the “revolutionary EV platform” becomes technology available for licensing to anyone who’ll pay—including potentially for gas-powered vehicles.

This isn’t necessarily bad strategy. Technology licensing offers higher margins than manufacturing cars, and if VW and Rivian can monetize their $5.8 billion investment by selling software architecture to competitors, that’s smart business. But it’s a tacit admission that neither company is confident their EV sales alone will justify the investment in a post-subsidy market.

We documented VW’s struggles with in-house software development and the surprise this partnership caused among Cariad’s 6,000 employees when it was announced. Now we’re watching the pivot from “electrification partnership” to “technology vendor”—a hedge against the possibility that mass EV adoption takes longer than automakers bet on when federal money was flowing freely.

The R2 launches in the first half of 2026 at $45,000 without any federal incentives helping buyers. VW’s ID.EVERY1 arrives in 2027 targeting budget-conscious European buyers. If those vehicles succeed on their own merits, the licensing opportunity becomes a lucrative bonus. If they struggle, at least VW and Rivian can try recovering some investment by selling the platform to others facing similar software challenges.

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