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Volkswagen Says Rivian JV Completed Winter Testing, Unlocking $1B Investment

Volkswagen Group announced on Friday that its joint venture with Rivian has successfully completed winter testing of the software-defined vehicle architecture that will underpin the German automaker’s next generation of EVs.

As established in 2024, the successful winter testing clears the way for a $1 billion equity investment in the American EV maker.

The testing programme, conducted over several months in Phoenix and Arjeplog, Sweden, validated the functionality and performance of the joint venture’s production-intent zonal architecture across vehicles from Volkswagen, Audi, and Scout Motors.

According to the German giant, teams examined the interaction between hardware and software for functions including all-wheel drive, traction control, driving performance, and over-the-air update capability.

Hundreds of tests and validation cycles were conducted across both locations. “We are accelerating toward the future,” Volkswagen Group CEO Oliver Blume said.

“With the successful completion of the winter tests, our joint venture once again demonstrates the speed and precision of its work,” Blumer added.

Individual approval drives in Germany and Sweden with the brands’ development leadership marked the formal completion of the programme.

$1 Billion at Stake

The completion of winter testing directly triggers a financial milestone for Rivian.

During the company’s fourth-quarter earnings call in February, Chief Financial Officer Claire McDonough said Rivian expects to receive $2 billion in additional capital from VW Group in 2026.

Of that, $1 billion is equity “subject to the successful completion of winter testing,” while the remaining $1 billion is nonrecourse debt due in October.

Rivian received the first $1 billion tranche of VW’s investment last year after achieving its first profitable quarter. That funding made Volkswagen one of Rivian’s largest backers, second only to Amazon.

The German automaker pledged up to $5.8 billion in total investment in the Irvine-based company through the joint venture, named Rivian and Volkswagen Group Technologies — or RV Tech — which was established in November 2024.

From Arizona Heat to Swedish Ice

The testing programme consisted of two phases. In Arizona, engineering teams from VW Group brands and the joint venture finalised key software functions and prepared reference vehicles for winter testing in Europe.

In Sweden, the systems were stress-tested under extreme weather conditions with snow and ice.

The results demonstrated that the SDV architecture operates reliably under harsh winter climatic and dynamic driving conditions, Volkswagen said.

Software Specialists to Palo Alto

Alongside the testing announcement, Volkswagen disclosed a qualification programme designed to deepen its brands’ internal software capabilities.

Starting in early May, Volkswagen Passenger Cars will send software specialists to RV Tech locations including Palo Alto for several months to learn the joint venture’s architecture and codebase.

Upon returning to Wolfsburg, these specialists will serve as internal experts and bring the knowledge back into their development departments.

Audi and Porsche are preparing to launch similar programmes.

The German automaker’s previous in-house software unit, Cariad, struggled with delays and cost overruns that reached over €10 billion ($11.5 billion) set back key vehicle launches.

Revenue and Outlook

Rivian reported $447 million in software and services revenue in the fourth quarter of 2025, with approximately 60% — or $273 million — coming from the VW joint venture.

The company has said it expects software and services revenue to grow roughly 60% in 2026.

Rivian‘s founder and Chief Executive Officer RJ Scaringe said in February that the relationship with VW “has been very, very strong” and that the technology platform is designed to work across “a wide band of price points and across a range of form factors.”

February Update

As reported by EV in mid-February, Rivian addressed its multi-billion-dollar joint venture with the Volkswagen Group, sharing new updates on its progress.

At the time, Scaringe revealed that the two companies have begun winter testing on VW vehicles as scheduled.

“I’m very pleased that we have delivered vehicles for winter testing for multiple Volkswagen Group brands, 13 months after the formation of the joint venture,” he stated.

The German automaker pledged to invest up to $5.8 billion in the Irvine-based company as they co-develop software architecture to be included in upcoming models of the VW Group.

The joint venture, named RV Tech, was established in late 2024.

The Scalable Systems Platform (SSP) is expected to be used on up to 30 million vehicles across multiple brands and price segments of the Group.

Cláudio Afonso founded CARBA in early 2021 and launched the news blog EV later that year. Following a 1.5-year hiatus, he relaunched EV in April 2024. In late 2024, he also started AV, a blog dedicated to the autonomous vehicle industry.