Rivian and Volkswagen are collaborating to produce more affordable electric vehicles (EVs) without compromising on advanced technology. Wassym Bensaid, Rivian’s chief software officer, emphasized that the upcoming EV priced at $22,500 will not sacrifice technological sophistication despite its budget-friendly price.
Last year, Volkswagen and Rivian announced a partnership where VW invested over $5 billion in Rivian. This collaboration aims to develop next-generation software and EV technology. The joint venture is co-led by Bensaid and Volkswagen executive Carsten Helbing.
In March, Volkswagen introduced the ID.EVERY1, a compact electric hatchback that will be the first VW vehicle to feature software developed through this partnership. The four-seater EV, measuring 13 feet in length, is scheduled to launch in Europe by 2027 for approximately 20,000 euros ($22,500). It remains unclear if VW plans to introduce it to the US market.
Bensaid expressed enthusiasm about bringing advanced technology to a broader range of vehicles. He stated, “Inexpensive cars shouldn’t have low technology,” highlighting the joint venture’s mission to integrate high-tech features into budget EVs.
To achieve cost efficiency, the ID.EVERY1 will utilize Rivian’s software architecture. Instead of employing individual computers for components like seats, lights, and doors, all features will be managed by a central computer based on Rivian’s technology. This approach allows VW to reduce costs by minimizing parts and simplifying design.
Although the ID.EVERY1 won’t be the first vehicle to use technology from the Rivian-VW joint venture (that distinction belongs to Rivian’s R2, set for release next year), it represents a significant milestone for both companies.
The lack of affordable EVs continues to deter potential buyers, and Volkswagen aims to address this gap with its most budget-friendly battery-powered offering yet.
Other companies are also entering the affordable EV space. Startup Slate Auto recently unveiled a $25,000 pickup truck, scheduled for sale in the US in 2026. Unlike Rivian’s approach, the Slate truck prioritizes simplicity, omitting features like power windows, a radio, or an infotainment system to keep costs low.
Despite this minimalist approach, Slate Auto received 100,000 refundable $50 reservations within two weeks. When asked about Slate’s strategy, Bensaid acknowledged Rivian’s welcoming stance toward increased competition but noted their differing approach to affordability.
“Inexpensive cars shouldn’t be cars with limited features,” Bensaid remarked, asserting Rivian’s belief in delivering a rich user experience at a lower price point through efficient vehicle technology.
— new from Business Insider