Published : 2 weeks ago, on 20/11/2024

By Nora Eckert

DETROIT (Reuters) -Volkswagen appointed former Rivian executive Kjell Gruner as head of its American business on Tuesday, as the automaker faces a choppy electric transition and ongoing negotiations with the United Auto Workers union in the region.

Gruner, previously EV startup Rivian’s chief commercial officer and head of business growth, succeeds Pablo Di Si, who has been in the role since 2022.

Automakers in the U.S. and around the world are preparing for regulatory uncertainty under President-elect Donald Trump, who has promised to pull back incentives on EV manufacturing and purchasing.

The president-elect’s transition team is planning to kill the $7,500 consumer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, two sources with direct knowledge of the matter told Reuters last week.

Several versions of Volkswagen’s ID.4 electric SUV qualify for the credit.

Globally, too, there is turbulence. Volkswagen has faced struggles with its passenger-car division, leading it to cut its annual outlook this year. Its labor chief has also warned of mass layoffs and rare plant closures in Germany.

Gruner’s experience with Rivian could be useful, as Volkswagen is investing $5.8 billion into the EV startup as part of a joint venture to develop EV architecture and software. Before working with Rivian, Gruner held posts at Porsche AG and DaimlerChrysler AG.

Volkswagen also needs to negotiate a contract with the UAW union at its Tennessee manufacturing facility. Workers voted by 73% to join the labor group in April.

(Reporting by Nora Eckert; Editing by David Gregorio)