VW-Xpeng-Rivian: IP Firewalls or Friendly Fire?

15 Aug 2025

VW-Xpeng-Rivian: IP Firewalls or Friendly Fire?

Volkswagen's latest technology partnerships are raising questions about the safeguarding of intellectual property. On August 15, VW and China’s Xpeng announced an expanded agreement to develop E/E architecture for both electric and internal combustion platforms in the Chinese market. This comes alongside VW’s $5+ billion joint venture with Rivian, aimed at creating a next-generation global software and electrical architecture.

IP theft is an ongoing concern in China, with the USTR 2025 Special 301 Report flagging persistent risks such as forced technology transfer, trade secret misappropriation, and piracy. VW must ensure Rivian’s proprietary software is not inadvertently exposed through its China-focused collaboration. The same applies to Xpeng’s own IP, which could also be vulnerable if proper safeguards are not maintained.

VW can protect both partnerships by strictly separating source code repositories, using API-only integration between systems, maintaining distinct PKI signing processes, ensuring all development and data for each JV remain in their respective jurisdictions, and conducting regular third-party security audits. Personnel involved in one project should not have access to the other to prevent cross-pollination of sensitive knowledge.

The challenge for VW will be managing these partnerships in parallel without allowing technology leakage, while still delivering on ambitious timelines. Investors and industry observers will be watching closely to see if the automaker can balance collaboration with protection.