Business · Companies · 10 hrs ago
Volkswagen considers cheaper China-developed software for European models
Volkswagen is considering using China-developed software in European models instead of software planned with US startup Rivian.
The proposal concerns high-volume future cars, including the ID.Golf, ID.Passat and Skoda Enyaq.
A person familiar with the matter said the Chinese option would cost less and could be introduced faster.
It could save Volkswagen €4 billion to €5 billion, according to people cited in the coverage of the proposal.
Volkswagen agreed to work with Rivian on software in 2024, and the first planned vehicle is a small car expected next year.
The proposal received a positive reaction when first presented to Volkswagen’s management board, but the board has not approved it.
Volkswagen brand chief Thomas Schäfer is expected to present the proposal again to the board before the end of this year.
Volkswagen is considering using software developed in China instead of Rivian software in European volume models, according to a person familiar with the matter.
The proposed change could be cheaper and faster to implement, the person said.
The proposal could save the group €4 billion to €5 billion, according to a report cited by n-tv.
Volkswagen brand chief Thomas Schäfer is expected to present the proposal to the group’s executive board later this year.
The board has not given the proposal the green light.
- Who
- Volkswagen is considering the change. Brand chief Thomas Schäfer is expected to present the proposal.
- What
- The company is considering Chinese-developed software instead of Rivian software for volume models in Europe.
- When
- The proposal is expected to go to the executive board later in 2026.
- Where
- The software would be used in Volkswagen volume models in Europe.
- Why
- The proposed software is said to be cheaper and quicker to implement, with potential savings of €4 billion to €5 billion.
This story does not have two clearly opposing sides.
Volkswagen agreed to work with US startup Rivian on software.
Schäfer presented the proposal to the executive board, which reacted positively but did not approve it.
Schäfer is expected to bring the proposal to the executive board again.
Volkswagen’s first vehicle under the Rivian software collaboration, the small car known by the working name ID.Every1, is due to go on sale.
- Potential savings
- €4 billion to €5 billion
- Models cited
- ID.Golf, ID.Passat and Skoda Enyaq
- Rivian agreement
- Reached in 2024
- First Rivian-linked vehicle
- ID.Every1, due next year
- Proposed board presentation
- Later in 2026