Volkswagen's New American CEO Comes From Rivian

Plus, the Hyundai Motor Group's EVs plan to own the LA Auto Show, while Ford makes cuts in Europe.

The Rivian-Volkswagen $6 billion joint venture got a little more interesting this week. The Volkswagen Group of America, which includes the core VW marques plus Audi, Lamborghini and other brands, is getting a new CEO whose last stint was at the California-based electric vehicle startup. And it's a homecoming of sorts as well, since new CEO Kjell Gruner also ran Porsche Cars North America for a few years. Can he help turn around an iconic brand whose American future feels a bit murky these days?

That kicks off this midweek edition of Critical Materials, our morning roundup of news from the mobility and technology spaces. Also on tap for today: we look at Hyundai Motor Group's big electric plans for the LA Auto Show, while Ford is cutting jobs in Europe.

30%: Meet The New VW American Boss

Even I'll admit that the "new CEO from Rivian" in my headline is a bit of a reach here. Yes, Gruner is a former Rivian executive. But he was only the startup's sales chief for 11 months between 2023 and earlier this summer. Gruner is a 25-year auto industry veteran who worked as a manager at Porsche in Germany, what was then called DaimlerChrysler, then Mercedes-Benz, then back to various leadership roles at Porsche until he was CEO of its North American operations.

Gruner's appointment to the top job was announced yesterday alongside the departure of Pablo Di Si, who VW officials said "stepped down from his position last week on his own request." Di Si had been CEO of the division for about two years.

So why the change? It's hard to point to one particular reason, but across the board, the global VW Group is generally not in fantastic shape. It's getting creamed in China by new, local competitors, losing ground in Europe to them too, struggling with a shrinking overall car market, and probably has a war brewing with its labor unions as it seeks unprecedented plant closures. In the U.S., it's doing a little better; Automotive News reports sales were up 19% in Q3, but on the backs of heavy discounts, which is never great for the bottom line. And VW's once-ambitious electric transition feels more endangered than ever. After years of hype, in the U.S. it just sells the ID.4 and now the ID.Buzz—the former's sales haven't been great as of late and the latter is on the expensive side for the range it offers.

Volkswagen, as a brand and as a conglomerate, seems to be in the midst of figuring out what it really is in 2024 and beyond. Perhaps Gruner will be able to help figure that out, at least on our shores.

60%: Hyundai's Big Plans For The LA Auto Show

One automaker that does seem to have things figured out is Hyundai. Its leaders have repeatedly insisted that it's not slowing down on the EV front as many rivals are, and that it can capitalize on its huge U.S. investments. But that theory is about to get tested if the EV tax credits evaporate.

We'll see a lot of that at this week's LA Auto Show, which like most big auto shows has been inconsistent in terms of new product news in recent years. But Hyundai and its brands are the ostensible stars this time: we expect to see the Hyundai Ioniq 9, the U.S.-spec 2026 Kia EV6, the public debut of the 2025 Hyundai Ioniq 5, some news from Genesis and more. Plus, all of the cars debuting here should have the Tesla NACS plug and almost all—if not all—may end up being built in the U.S. too.

Expect more on these debuts as we get them.

90%: Ford Makes Cuts In Europe As EV Demand Weakens

But again, not everyone is having a great time in this space. Ford is cutting jobs in Europe as its Capri and Explorer EV models, which are based on a VW Group electric platform, seemingly fail to take off. Here's Agence France-Presse:

"The company has incurred significant losses in recent years," Ford said in a statement, blaming "the industry shift to electrified vehicles and new competition." The move will affect 2,900 jobs in Germany, 800 in the UK and 300 in western Europe by the end of 2027, a Ford spokesman told AFP.

"It is critical to take difficult but decisive action to ensure Ford's future competitiveness in Europe," said Dave Johnston, Ford's European vice-president in the statement.

The company also said it was adjusting the production of its Explorer and Capri models, resulting in reduced hours at its Cologne plant in the first quarter of 2025.

Europe's entire car market just isn't in a great way right now.

100%: How Does VW's U.S. Operation Get Back In The Game?

What's your advice to Gruner as he steps into the top job? How does VW's American arm—now more important than ever, with China sales shrinking—kick things into high gear?

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