Enlarge (credit: Rivian)

Volkswagen is committing $5 billion to upstart EV company Rivian, with $1 billion in cash upfront and $4 billion over time. The companies aim to use this joint venture to deliver new vehicles "in the second half of the decade," according to the announcement, and the cash will likely help push along Rivian's next generation of vehicles, including more affordable models.

Oliver Blume, left, CEO of Volkswagen Group, and RJ Scaringe, founder and CEO of Rivian. (credit: Rivian)

Rivian founder and CEO RJ Scaringe wrote on X (formerly Twitter) that the partnership "brings Rivian’s software and zonal electronics platform to a broader market through Volkswagen Group’s global reach and scale." VW Group, which also controls Porsche, Lamborghini, Audi, and Ducati, among others, has a lot to gain from working with Rivian, particularly when it comes to software and ride control. Ars and most other reviewers have been impressed by Rivian's drive engineering and display software on the R1T truck, R1S SUV, and the second generations of them both, which majorly reworked the underpinnings and offerings, largely through design and software choices.

Volkswagen's recent software moves have been on an opposing trajectory. The Group's 2019 moves to align all its brands' software under one division, Cariad, with three platforms developed at once, has led to massive leadership shake-ups and restarts. We were not impressed with the ID.4's infotainment system in 2021, and further bugs in both system and screen software plagued the car, undermining what was otherwise regarded as a good wheels-on-road experience.

Enlarge (credit: Getty Images/3alexd)

Have electric vehicles been overhyped? A casual observer might have come to that conclusion after almost a year of stories in the media about EVs languishing on lots and letters to the White House asking for a national electrification mandate to be watered down or rolled back. EVs were even a pain point during last year's auto worker industrial action. But a look at the sales data paints a different picture, one where Tesla's outsize role in the market has had a distorting effect.

"EVs are the future. Our numbers bear that out. Current challenges will be overcome by the industry and government, and EVs will regain momentum and will ultimately dominate the automotive market," said Martin Cardell, head of global mobility solutions at consultancy firm EY.

Public perception hasn't been helped by recent memories of supply shortages and pandemic price gouging, but the chorus of concerns about EV sales became noticeably louder toward the end of last year and the beginning of 2024. EV sales in 2023 grew by 47 percent year on year, but the first three months of this year failed to show such massive growth. In fact, sales in Q1 2024 were up only 2.6 percent over the same period in 2023.