Volkswagen names former Rivian executive as head of U.S. operations amid industry challenges

Former Rivian executive Kjell Gruner has been appointed head of Volkswagen's American operations. Pablo Di Si, who had held the position since 2022, stepped down and Gruner has taken over as the new editor of pbs News Hour. Volkswagen is navigating a turbulent EV market and ongoing labor negotiations with the United Auto Workers (UAW) union and is coming off months of political upheaval as the Volkswagen board reshuffled its leadership.

Rivian’s previous chief commercial officer and head of business growth, Gruner brings electric vehicle (EV) strategy experience to Volkswagen’s U.S. division. He previously spent 12 years at Porsche AG and DaimlerChrysler AG, leading a global business in North America and providing a strong pedigree to lead Volkswagen's American business.

Volkswagen’s troubles run through various fronts. Automakers in the U.S. are unsure what regulatory landscape they’ll inhabit next under President-elect Donald Trump, who has promised to wipe away the still USD 7,500 consumer tax credit for EV purchases. But the tax credit has been thus far what keeps the industry going, and taking it away would likely slow the adoption of EVs. If any policy changes are particularly impactful, that means some versions of Volkswagen’s ID.4 electric SUV currently qualify for the credit.

Volkswagen is trialing hard in its passenger car division globally, hitting the brakes on its annual outlook for 2023. Mass layoffs and plant closures in Germany are also on the automaker’s labor chief’s radar, as is broad industry trouble.

Volkswagen’s move to hire Gruner as it pushes ahead with the EV market comes on the heels of a new USD 5.8 billion joint venture with Rivian to build EV architecture and software. The company could stand to benefit from his experience in the EV startup as it makes its move to electrification.

In the U.S., Volkswagen faces heated labor talks, too: Workers at its Tennessee plant voted in April to become unionised, with 73 percent backing unionisation. Secure the contract of course, this is only on top of other priorities in the region.

Gruner’s leadership will be pivotal as Volkswagen balances its EV ambitions, labor relations, and adapting to an evolving regulatory environment in one of its most crucial markets.