Summary
- Volkswagen Group of America includes core VW marques plus other brands and appointed a new CEO, Kjell Gruner
- Gruner is a former Rivian sales chief and has experience in the auto industry in various leadership roles
- The change in leadership comes as the global VW Group is facing challenges in different markets
- Hyundai Motor Group has big electric plans for the LA Auto Show, including debuts of Hyundai and Kia EVs
- Ford is cutting jobs in Europe due to losses, industry shift to electrified vehicles, and low demand for EV models based on VW Group platform
Article
Introduction
The recent Rivian-Volkswagen $6 billion joint venture took an interesting turn with the appointment of a new CEO for Volkswagen Group of America, Kjell Gruner. Gruner, an industry veteran with experience at Porsche and Rivian, faces the challenge of reviving the iconic brand’s American future amidst uncertain times.
Meet The New VW American Boss
Kjell Gruner, a former Rivian executive, brings a wealth of experience to his new role as CEO of Volkswagen Group of America. With a background in high-profile positions at Porsche, DaimlerChrysler, and Mercedes-Benz, Gruner’s appointment follows the departure of Pablo Di Si, highlighting the shake-up within the global VW Group.
Challenges Facing Volkswagen
Internationally, Volkswagen is grappling with increased competition in China and Europe, a shrinking car market, and potential labor disputes amid plant closures. In the U.S., sales have seen a modest increase but rely heavily on discounts, while the brand’s electric transition faces uncertainty with limited models and sales performance.
Hyundai’s Big Plans For The LA Auto Show
In contrast to Volkswagen’s challenges, Hyundai is maintaining a strong focus on electric vehicles, with a lineup of new models set to debut at the upcoming LA Auto Show. Despite potential changes to EV tax credits, Hyundai remains committed to its U.S. investments and showcases a range of electrified vehicles at the event.
Ford Makes Cuts In Europe As EV Demand Weakens
Ford is experiencing setbacks in Europe as demand for its Capri and Explorer EV models, based on a VW Group electric platform, falters. Significant losses, industry shifts towards electrification, and new competition have prompted Ford to announce job cuts in Germany, the UK, and western Europe, emphasizing the challenges faced by automakers in a changing market.
How Does VW’s U.S. Operation Get Back In The Game?
As Volkswagen’s American arm becomes increasingly crucial in light of global trends, new CEO Kjell Gruner must navigate the brand through a period of transformation. With the need to redefine Volkswagen’s identity and strategy in the U.S., Gruner faces the task of driving growth, expanding the electric vehicle portfolio, and regaining market competitiveness.
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