By Dominic Chopping

The joint venture formed by Volkswagen and Rivian is progressing in developing new electrical systems and software for electric vehicles, with Volkswagen's first car using the new technology still on track to launch in 2027.

This update comes as the first since the two companies announced the tie-up twelve months ago when the German automaker pledged to invest up to $5.8 billion in American Rivian and the joint venture by 2027. In return, it gets a mix of onboard computing and software that Rivian has spent billions of dollars to develop for its own vehicles.

The joint venture--Rivian and Volkswagen Group Technologies, or RV Tech--is developing a new system that consolidates electronics around a powerful central computer. The system reduces complexity and enables fast expansion of digital services and functions, with system updates over-the-air, much like a smartphone.

The technology is set to be tested under cold weather conditions at the start of next year, using Volkswagen, Audi and Scout vehicles.

Volkswagen Group plans to use the technology in electric vehicles across various models, price ranges and international markets, while Rivian will use it in future models the R2, R3 and R3X as well as to keep its current fleet updated with the latest software.

"The launch of R2 in the first half of next year...will showcase the advancements the joint venture has made," said RJ Scaringe, founder and chief executive of Rivian.

RV Tech now has over 1,500 employees between sites in the U.S., Germany, Canada, Sweden and Serbia.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 12, 2025 15:30 ET (20:30 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.