The recent $5 billion deal between Volkswagen Group and Rivian has been making headlines, but it appears that the partnership was in the works long before it was officially announced. It has been discovered that VW Group’s struggling software arm, Cariad, has been hiring top employees from Rivian over the past several months. According to LinkedIn data, at least 23 of Rivian’s employees have been hired by Cariad, including its chief software officer, chief product security officer, two vice presidents, and two principal engineers.
These hires took place before any deal between VW and Rivian was made, indicating that VW was aware and interested in Rivian’s software expertise long before the partnership was established. The joint venture between the two companies is still in the process of being formed, with the expectation that it will be formalized in the fourth quarter. However, the wave of hires from Rivian suggests that VW and Cariad are eager to tap into the software talent that Rivian possesses.
These hires have also played a role in bolstering Cariad’s efforts to establish a Silicon Valley outpost in Mountain View called the SDV Hub. The SDV Hub is focused on developing Cariad’s next-generation software architecture known as “software 2.0.” In 2023, Cariad hired Sanjay Lal, who had previously led the development of Rivian’s infotainment and next-gen middleware, to lead the establishment of the SDV Hub. The engineers at the SDV Hub are working on developing software 2.0, which is intended to be an operating system designed for all VW Group brands.
While the hires from Rivian have helped Cariad build up its North American presence, it is worth noting that Cariad has a global workforce of over 7,000 employees. The SDV Hub currently has around 230 employees, meaning that recent hires from Rivian make up about 10% of Cariad’s employee base in the region. This influx of talent comes at a crucial time for Cariad, as the company has been restructuring after years of struggles. Created in 2020, Cariad was intended to accelerate the development of advanced software and electrical architecture for VW Group’s push into electric vehicles (EVs). However, the company has faced delays and internal problems, leading to executive shakeups and the dismissal of VW Group CEO Herbert Diess.
Cariad, now under the direction of Peter Bosch, has successfully completed the 1.2 software architecture that will be used in the upcoming Porsche Macan EV. However, it is the 2.0 architecture that is expected to catapult VW Group’s brands into the same league as Tesla. By tapping into the talent from Rivian, Cariad is aiming to bring the necessary expertise to fulfill its ambitions in the EV market.
The decision to hire employees from Rivian is a departure from Cariad’s previous strategy of building its North American workforce primarily from within VW Group and other automotive or software suppliers. The recent hires from Rivian represent a shift towards attracting talent from technology companies, such as Google, which is in line with Cariad’s goal of developing advanced software for its EVs.
VW and Cariad are not the only companies looking to startups like Rivian for talent. Ford has been recruiting employees from Rivian, Tesla, Lucid Motors, and even Apple’s disbanded Project Titan for its own low-cost EV project. This trend highlights the competition for skilled employees in the EV industry and the recognition of startups’ expertise in this field.
In conclusion, the recent hires by VW Group’s software arm Cariad from Rivian indicate a strong interest in Rivian’s software expertise even before the official partnership between the two companies was announced. These hires have helped Cariad build up its Silicon Valley outpost and strengthen its workforce in North America. With the joint venture between VW and Rivian still in the works, the expertise brought by Rivian’s employees could prove valuable in developing the software and electrical architecture needed for VW Group’s push into the EV market. This move also reflects a shift in Cariad’s hiring strategy, as it seeks talent from technology companies like Rivian to accelerate its development of advanced software for VW Group’s brands. The competition for talent in the EV industry is heating up, with other companies like Ford also recruiting from startups like Rivian. Overall, these hires highlight the growing importance of software expertise in the automotive industry and the efforts of companies to tap into talent from startups to stay competitive in the rapidly evolving EV market.
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