Volkswagen is making a bold move to address one of its biggest weaknesses in the electric vehicle market – software. With a $5.8 billion investment into American EV startup Rivian, the German automotive giant is hoping to overhaul its digital platform and bring a new level of performance and reliability to its upcoming electric lineup. The first beneficiary? The ID.EVERY1 – VW’s most affordable electric car to date.
Small Car, Big Tech
Despite being positioned as the entry point into Volkswagen’s electric range, the ID.EVERY1 will be the first model to benefit from the high-performance software developed in collaboration with Rivian. Priced around £17,000, the vehicle is not just a budget-friendly EV – it’s a signal of a broader transformation in Volkswagen’s approach to electrification.
Kai Grünitz, head of technical development at VW, emphasized the significance of this shift, calling the ID.EVERY1 the “front-runner” for the next-generation ID.Golf in terms of its technological architecture. He explained that the vehicle would be the first to integrate VW’s new software stack – designed in part with Rivian’s help – which aims to offer more flexibility, faster response, and a smoother user experience.
A Pivotal Year for Volkswagen
Unveiled in Düsseldorf to the soundtrack of Queen’s “Under Pressure”, the launch of the ID.EVERY1 comes at a critical moment for Volkswagen. Company CEO Thomas Schäfer didn’t sugarcoat the challenges. “2024 has undoubtedly been the most difficult year in Volkswagen’s modern history,” he said, admitting that “the Volkswagen feeling” had faded across its product lineup and that previous EV models had stumbled when it came to software integration.
The early versions of VW’s ID models – including the ID.3 and ID.4 – were criticized for buggy infotainment systems and sluggish interfaces. Drivers often found themselves frustrated with software glitches, delayed updates, and underwhelming digital experiences. With Rivian’s involvement, VW hopes to put those problems in the rearview mirror.
Who Is Rivian – and Why VW Turned to Them
Founded in 2009, Rivian has quickly earned a reputation as one of the most innovative EV manufacturers in the U.S., building electric trucks and SUVs like the R1T and R1S that blend performance, utility, and tech. At one point in 2021, the company was valued at more than $100 billion following its IPO – briefly making it the second-most valuable U.S. automaker behind Tesla.
While that valuation has since dropped significantly, to around $10 billion, Rivian remains at the forefront of software development in the EV space. Its vehicles offer advanced driver assistance systems, intuitive interfaces, and a software-first approach that attracted VW’s interest. With future vehicles like the R2 and R3 in the pipeline – designed with European markets in mind – Rivian is aiming for more compact, versatile, and accessible options.
What Rivian Brings to the Table
Unlike Volkswagen’s previous tech-sharing agreement with Ford, this deal isn’t about platform or parts exchange. There won’t be Rivian chassis under VW cars or badge-swapped models in showrooms. Instead, VW gains access to Rivian’s advanced software stack, tools, and development environment – a move meant to accelerate software deployment and product iteration across VW’s lineup.
Kai Grünitz noted that Rivian’s development speed has been impressive. “I never had such a fast response before,” he said, praising the agility of the California startup. In return, VW brings scale, compliance knowledge, and decades of experience operating across complex global markets – something Rivian, as a younger company, can leverage as it expands internationally.
What Models Will Get the New Tech?
The new software will debut in the ID.EVERY1 around 2027 and gradually expand to other models. The ID.Golf, expected to succeed the current ID.3, will follow with the same Rivian-influenced platform. Volkswagen has already confirmed that beloved model names such as Golf, Polo, and GTI will continue into the electric age, maintaining brand recognition even as the technology under the hood changes dramatically.
However, not all VW EVs will benefit from the new system right away. The upcoming ID.2.ALL, slated for release in 2026, will reportedly stick with the existing software architecture and may be rebranded as the ID.POLO when it hits production.
Why This Partnership Matters
Legacy automakers like Volkswagen are under growing pressure from Chinese EV startups and Tesla, which can bring new vehicles to market at a faster pace with more advanced tech. Historically, companies like VW have struggled with slow development cycles and legacy systems. Partnering with Rivian offers a way to leapfrog these obstacles and regain competitive momentum.
More than just a financial lifeline for Rivian, the deal represents a strategic bet for VW – one where software takes center stage. If successful, the collaboration could reshape how the brand builds, sells, and updates its vehicles, ushering in a new era where even the most affordable models come equipped with cutting-edge digital features.
In a world increasingly dominated by digital experience, Volkswagen’s message is clear – the future isn’t just electric, it’s smart. And with Rivian in its corner, the German automaker hopes to prove it can still set the pace in an
