Volkswagen AG CEO Oliver Blume addressed workers in Wolfsburg, stating that the current union proposals for cost-cutting are merely a starting point and insufficient to enhance the company's competitiveness. He emphasized the management's need to make decisions in a rapidly changing environment, expressing concern for the company's future.
Rivian and Volkswagen have formed a joint venture to develop advanced electric vehicle technology, with Volkswagen investing $5 billion and increasing its commitment by an additional $800 million. This partnership aims to enhance Rivian's vehicle margins and accelerate software development, while both companies face challenges in the competitive EV market. The first vehicles utilizing this new architecture are expected to launch in 2027, with implications for various brands within the Volkswagen Group.
Volkswagen Group has increased its investment in a joint venture with Rivian Automotive to up to $5.8 billion, with the first VW models utilizing Rivian's software expected by 2027. The partnership aims to integrate Rivian's technology across various VW brands, starting with Volkswagen and Audi. The joint venture will be led by executives from both companies and will focus on software development, with initial teams based in Palo Alto, California.
Volkswagen plans to close at least three plants in Germany and cut tens of thousands of jobs amid ongoing restructuring efforts due to high operational costs and weak sales performance. The company has faced two profit warnings in 2024, with a return on sales of just 2.3 percent for its core brand, the lowest among its group. Tensions are rising as management seeks wage cuts while the works council prepares for potential resistance.
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