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At present, the Bundeskartellamt has cleared below merger management the formation of a three way partnership between Volkswagen and US electrical automotive producer Rivian in addition to VW’s acquisition of a minority shareholding in Rivian Automotive Inc. VW and Rivian will every maintain a 50 per cent share within the three way partnership, which goals to develop the subsequent era of the so-called E/E structure for electrical autos.
This structure describes how the assorted electrical and digital capabilities are designed and embedded in autos, together with the mandatory management items, sensors, and many others., and the way they work together.
Andreas Mundt, President of the Bundeskartellamt: “At its core the cooperation project is about the way in which a large number of complex functions and components are best organised in cars and how they interact with each other. As cars become increasingly digital and connected, the question of the right system architecture is nothing less than a key competition parameter. When it comes to cooperation projects set up to develop new products and technologies in key cutting-edge sectors, particularly those involving large companies, we take a close look at competition in innovation. The project does not raise any concerns in this respect, nor does it raise any other serious competition concern’s.”
E/E structure is at the moment present process a significant change because the market now not considers the at the moment prevailing architectures with many distributed management items to be ample for future autos. The foreseeable shift to electrical mobility implies that vehicles will include considerably extra electrical and digital elements sooner or later. This additionally applies to the autonomous driving capabilities and network-based value-added companies built-in into autos. On this context, software program is predicted to play a good larger function sooner or later.
The challenge might be cleared below merger management because it was not anticipated to considerably impede efficient competitors. That is the case no matter whether or not the related market is taken into account to include the E/E structure as an entire or of assorted sub-systems and sub-services. There’ll nonetheless be a ample vary of companies accessible to automotive producers to construct E/E architectures. There isn’t any motive for concern that competitors in innovation within the area of E/E structure can be impeded to a major extent. Lastly, competitors within the downstream markets for autos during which E/E architectures are used will not be anticipated to be significantly impeded both.
Courtesy of The Bundeskartellamt
