The Rivian-Volkswagen $6 billion three way partnership received somewhat extra attention-grabbing this week. The Volkswagen Group of America, which incorporates the core VW marques plus Audi, Lamborghini and different manufacturers, is getting a brand new CEO whose final stint was on the California-based electrical car startup. And it is a homecoming of types as properly, since new CEO Kjell Gruner additionally ran Porsche Automobiles North America for just a few years. Can he assist flip round an iconic model whose American future feels a bit murky as of late?
That kicks off this midweek version of Crucial Supplies, our morning roundup of stories from the mobility and know-how areas. Additionally on faucet for immediately: we have a look at Hyundai Motor Group’s large electrical plans for the LA Auto Present, whereas Ford is reducing jobs in Europe.
30%: Meet The New VW American Boss
Even I will admit that the “new CEO from Rivian” in my headline is a little bit of a attain right here. Sure, Gruner is a former Rivian govt. However he was solely the startup’s gross sales chief for 11 months between 2023 and earlier this summer season. Gruner is a 25-year auto trade veteran who labored as a supervisor at Porsche in Germany, what was then referred to as DaimlerChrysler, then Mercedes-Benz, then again to numerous management roles at Porsche till he was CEO of its North American operations.
Gruner’s appointment to the highest job was introduced yesterday alongside the departure of Pablo Di Si, who VW officers stated “stepped down from his place final week on his personal request.” Di Si had been CEO of the division for about two years.
So why the change? It is laborious to level to 1 explicit cause, however throughout the board, the worldwide VW Group is mostly not in incredible form. It is getting creamed in China by new, native rivals, shedding floor in Europe to them too, combating a shrinking general automobile market, and doubtless has a warfare brewing with its labor unions because it seeks unprecedented plant closures. Within the U.S., it is doing somewhat higher; Automotive Information stories gross sales had been up 19% in Q3, however on the backs of heavy reductions, which isn’t nice for the underside line. And VW’s once-ambitious electrical transition feels extra endangered than ever. After years of hype, within the U.S. it simply sells the ID.4 and now the ID.Buzz—the previous’s gross sales have not been nice as of late and the latter is on the costly aspect for the vary it presents.
Volkswagen, as a model and as a conglomerate, appears to be within the midst of determining what it truly is in 2024 and past. Maybe Gruner will be capable of assist determine that out, not less than on our shores.
60%: Hyundai’s Massive Plans For The LA Auto Present
Photograph by: Hyundai
One automaker that does appear to have issues found out is Hyundai. Its leaders have repeatedly insisted that it is not slowing down on the EV entrance as many rivals are, and that it might capitalize on its enormous U.S. investments. However that idea is about to get examined if the EV tax credit evaporate.
We’ll see loads of that at this week’s LA Auto Present, which like most large auto exhibits has been inconsistent when it comes to new product information lately. However Hyundai and its manufacturers are the ostensible stars this time: we anticipate to see the Hyundai Ioniq 9, the U.S.-spec 2026 Kia EV6, the general public debut of the 2025 Hyundai Ioniq 5, some information from Genesis and extra. Plus, all the vehicles debuting right here ought to have the Tesla NACS plug and virtually all—if not all—might find yourself being constructed within the U.S. too.
Anticipate extra on these debuts as we get them.
90%: Ford Makes Cuts In Europe As EV Demand Weakens
Ford Explorer EV manufacturing begin in Cologne, Germany
However once more, not everyone seems to be having a good time on this area. Ford is reducing jobs in Europe as its Capri and Explorer EV fashions, that are based mostly on a VW Group electrical platform, seemingly fail to take off. This is Agence France-Presse:
“The corporate has incurred vital losses lately,” Ford stated in an announcement, blaming “the trade shift to electrified autos and new competitors.” The transfer will have an effect on 2,900 jobs in Germany, 800 within the UK and 300 in western Europe by the tip of 2027, a Ford spokesman informed AFP.
“It’s crucial to take tough however decisive motion to make sure Ford’s future competitiveness in Europe,” stated Dave Johnston, Ford’s European vice-president within the assertion.
The corporate additionally stated it was adjusting the manufacturing of its Explorer and Capri fashions, leading to decreased hours at its Cologne plant within the first quarter of 2025.
Europe’s total automobile market simply is not in an effective way proper now.
100%: How Does VW’s U.S. Operation Get Again In The Recreation?
Photograph by: Volkswagen
2025 Volkswagen ID. Buzz U.S. version first drive.
What’s your recommendation to Gruner as he steps into the highest job? How does VW’s American arm—now extra essential than ever, with China gross sales shrinking—kick issues into excessive gear?
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