By Adam Whittaker
Volkswagen said Rivian Automotive executive Kjell Gruner will lead its U.S. business, a week after teaming up with the electric-vehicle startup in a $5.8 billion deal.
The German car maker said Gruner would take over as chief executive of Volkswagen's America operations on Dec. 12 from Pablo Di Si, who requested to step down last week. Gruner most recently served as chief commercial officer at Rivian and has experience at Porsche AG, DaimlerChrysler and Mercedes-Benz Cars.
His appointment comes a week after Volkswagen agreed to invest up to $5.8 billion in Rivian's stock and a joint venture in exchange for access to onboard computing and software that Rivian had developed for its own vehicles.
The deal represents a much-needed financial boost for Rivian, whose technology should help Volkswagen compete with Elon Musk's Tesla and Chinese rivals. Volkswagen executives have been alarmed the company is falling behind Chinese rivals in terms of digital features and Rivian's technology presents a technological leap compared with its current offering.
Automakers have been agonizing for months over a slow EV market and fierce competition from local car makers in China. Several car makers, including Volkswagen, have cut their sales and profitability forecasts for the year as challenges pile up.
Volkswagen is also considering factory closures in Germany--which would be a first in its history--as it seeks to urgently cut costs after reporting a sharp fall in third-quarter earnings.
Gruner will also serve as CEO of Volkswagen's namesake brand in North America, the company said. Chief Human Resources Officer Gerrit Spengler will act as interim chief executive until Gruner takes charge.
North America accounted for roughly 11% of the cars Volkswagen delivered to customers in the first nine months of the year.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
November 19, 2024 11:53 ET (16:53 GMT)
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