Volkswagen Bets On Us Startup To Save Its Ev Strategy

German auto giant Volkswagen, facing tough competition from tech-savvy US and Chinese rivals, has partnered with a Californian electric vehicle maker to build software and save its EV strategy.

Europe's biggest automaker, which is battling falling profits and a wave of labour strikes at home, last month sealed a partnership with Irvine-based outfit Rivian.

Together they plan to build the operating system for VW's battery-powered cars from 2026 onwards -- an endeavour which has until now sapped the German firm's finances.

The tie-up between the mammoth VW group and the West Coast start-up founded in 2009 is a 'high risk' move for Volkswagen, said from the Center Automotive Research CAR.

But it reflects changing times, when increasingly complex intangible components, from heads-up displays to assisted-driving features, have taken on greater importance than classic hardware.