Volkswagen‘s software joint venture with Rivian will cost the German group approximately €2.3 billion ($2.6 billion) in 2026, according to calculations published by Der Spiegel.
According to the media outlet, the partnership has recently faced engineering disputes and growing reliance on VW‘s own resources.
The figure, calculated by the German outlet from Rivian‘s SEC filings, includes not only the $2 billion in equity and loans that Rivian has disclosed publicly, but also approximately €600 million in operational funding that Volkswagen is expected to pay this year to run the joint development centre.
According to the outlet, Volkswagen is responsible for 75% of the running costs of the joint venture entity, Rivian and Volkswagen Group Technologies (RVT), which employs more than 1,000 people.
A Volkswagen spokesperson disputed the figures when contacted by Der Spiegel.
The Hidden Cost
Rivian‘s public disclosures and management commentary have focused on the $5.8 billion in total consideration pledged by Volkswagen, which comprises equity investments and a non-recourse loan tied to development milestones.
Of that amount, $2.5 billion remains outstanding and $2 billion is expected this year.
What has received far less attention is the separate operational funding stream.
Der Spiegel reported that RVT generated $836 million in total revenue in 2025, citing a Rivian securities filing.
The outlet estimated that approximately half — around $418 million (€365 million) — came from Volkswagen‘s contributions to the joint development centre.
Based on Rivian CFO Claire McDonough’s guidance that software and services revenue would increase by 60% this year — which she said would be “driven in particular by Volkswagen’s contributions to the joint venture” — Der Spiegel projected Volkswagen‘s operational payments to RVT would grow to approximately €600 million in 2026.
At an on-stage interview at SXSW earlier this month, Fast Company asked Scaringe directly: “Why don’t they just buy you?”
Rivian‘s founder and CEO paused for five seconds before responding. “That’s not the outcome we were looking for,” he said, without elaboration.
Crash Safety Dispute
Der Spiegel also revealed a technical dispute between RVT engineers and Audi‘s safety team over the placement of electronic components in future vehicles.
According to the report, an RVT architecture design intended for Audi‘s electric A4 successor — with a planned 2029 deployment — was rejected by Audi‘s safety experts over concerns that key computing hardware was too exposed to structural damage in a crash.
Der Spiegel reported that Audi engineers feared an impact could knock out central processing units and, with them, safety-critical vehicle functions.
An Audi spokesperson told the outlet the matter has been resolved, saying the teams identified what it called a ‘purposeful approach.’
Manager Magazine reported in January that VW CEO Oliver Blume had assembled a task force to address broader delays at the joint venture, citing tensions between Rivian‘s standardised platform approach and demands from Audi and Porsche for brand-specific customisation.
Cariad at the Winter Testing
On the same Friday that Der Spiegel published its report, Volkswagen announced the successful completion of winter testing for vehicles from VW, Audi, and Scout Motors — a milestone tied to the release of $1 billion in equity to Rivian.
CEO Blume said the tests showed “once again how quickly and precisely” RVT is working.
However, Der Spiegel reported that the winter tests were not completed by RVT alone.
According to the outlet, engineers from Volkswagen’s in-house software unit Cariad were brought in to assist with the three test vehicles — referred to internally as ‘mules’ — to ensure the software was finished on schedule.
An Audi spokesperson confirmed the involvement to Der Spiegel, telling the outlet: “In the early phase of such a large development project, it makes sense to build on proven, group-compatible standards.”
On the fourth-quarter earnings call on February 12, Rivian’s founder and CEO RJ Scaringe said he was “very pleased” to have delivered vehicles for winter testing “13 months after the formation of the joint venture.”
CFO McDonough told investors at the J.P. Morgan conference earlier this month that the joint venture had executed “multiple times faster” than Volkswagen could have managed alone.
RVT co-CEO Wassym Bensaid, who also serves as Rivian‘s Chief Software Officer, addressed the internal friction in an interview with Handelsblatt published the same day.
“When you drive deep cultural and process change, you don’t only make friends,” Bensaid said.
He added that some employees’ roles are “fundamentally changing” and that certain hierarchy levels “will no longer be needed,” creating what he called “discomfort.”
$1 Billion Released on the Same Day
Der Spiegel‘s report landed on the same day that Rivian secured a fresh $1 billion investment from Volkswagen after completing winter testing — the milestone that had been the condition for the next funding tranche.
The payment comprises approximately $750 million in equity plus $250 million in additional equity or convertible debt.
JV Milestones
Of the $5.8 billion in total consideration, Rivian received the first $1 billion equity tranche in June 2025 at $19.42 per share.
With the winter testing tranche now released, a $1 billion non-recourse loan is scheduled later this year. The final $500 million is expected in 2027 as an equity investment.
The Scalable Systems Platform developed through RVT is expected to be deployed on up to 30 million vehicles.
The first non-Rivian model to use the architecture will be the VW ID.1, a €22,000 electric car with production expected in 2027.
