The US Election, a Volkswagen and Rivian partnership, and Geely's EV empire.

Welcome back to another edition of the Automotive Roundup, brought to you by car leasing experts Nationwide Vehicle Contracts. 

Since our last edition, a lot has happened not just within the automotive industry but also in terms of world politics. And as we all know, these are two things that are inextricably linked. 

The main story is that Donald Trump has been elected as the 47th President of the United States. He’s not afraid to say that he’s going to shake things up, so in this edition, we’ll explore what his presidency might look like for the automotive industry. 

Elsewhere, we’ve seen a partnership announced between Volkswagen Group and Rivian, and Geely streamlining its EV empire. 

As always, we’ll discuss the stories in three hundred words or less.  

Donald Trump elected as US President 

Regardless of whether you like him or not, Donald Trump becoming President-elect is a pivotal moment for the automotive industry. His second term will have huge implications for the electric car industry, both domestically and internationally. 

The first thing is that Trump is known to be a sceptic of climate change and has his doubts about the electric car industry. In his first term as President, he eased mandates on fuel efficiency by providing greater leeway for manufacturers, so in the event he does this again, we could see a resurgence in combustion-engined cars. 

This is not good for the European market, which as we are all aware, has gone all-in on electric cars. This could cause a further split in the global landscape and heap more pressure on the already-pressured European market. 

We have to hope that his buddy Elon Musk, who is pretty invested in the EV industry, convinces Trump otherwise. 

Hand-in-hand with this is Trump’s desire to return American automotive manufacturers to the top of the tree. By ‘making America great again’, Trump could look towards a more protectionist policy that sees a tariff put on European and Chinese manufacturers exporting to the US. 

This could have a serious impact on the profitability of exports and may also cause supply chain disruption. There’s no denying the global market relies heavily on Chinese components, and a tariff by Trump would push up costs even further for manufacturers. 

It’s not all doom and gloom, though. The US is nowhere near as influential in the automotive market as it once was, and regardless of Trump’s policies, I’d still expect the UK and Europe to push towards electrification. 

Keith Hawes, Director of Nationwide Vehicle Contracts said: 

“While there is some uncertainty in the industry regarding Donald Trump’s election, the UK and Europe’s commitment to electrification shouldn’t waver. European manufacturers have built up too much momentum concerning EVs to change course.” 

Volkswagen and Rivian announce $5.8 billion joint venture 

In a month that’s seen a lot of bad news for both Volkswagen and Rivian, they’ve changed their tune by announcing a joint venture worth up to $5.8 billion. 

The partnership will combine the strength of both manufacturers to create cutting-edge software and electronics architecture, and scale their EV platforms and architecture. 

It will utilise Rivian’s expertise in the EV segment, especially in terms of software and electrical hardware technology, while making the most of Volkswagen’s global scale and industry-leading vehicle platform competencies. 

Under the joint venture, engineers from both firms will work together in California, and three other sites will be developed in North America and Europe. 

The investment comes at a crucial time for Rivian, who has been in the news recently on the back of their staggering loss-making reports. It was announced that they had yet to turn a profit and had lost nearly $40,000 for every vehicle sold in Q3 2024! 

For Volkswagen, they’ve been planning to announce major cost-cutting measures as a result of continued poor performance, higher costs, and competition from Chinese EV manufacturers. 

The announcement continues the trend of manufacturers joining forces to share expertise, supplement growth, and share costs. 

It’s expected that the first models as part of the joint venture will be available in 2027. 

Geely to merge Zeekr, Lynk & CO

Geely Holding Group has announced that it plans to combine two of its electric car brands, Zeekr and Lynk & Co, in an effort to streamline its EV portfolio. 

In the merger, Zeekr will acquire a majority stake in Lynk & Co, a transaction that’s valued at around $2.5 billion. 

The aim of the partnership is to form a new energy vehicle manufacturing group that can have combined annual sales of more than a million units. Talk about setting your stall out! 

It’s hoped that the integration will decrease the competition within the Geely Group, which has led them to be surpassed by BYD in recent years. 

Their Chairperson, Li Shufu, said that the integration of the brands was needed to improve efficiency and reduce costs. 

This aligns with Geely's behaviour in recent years. They were known for their aggressive expansion and currently have ten automotive brands under their umbrella, including Volvo and Polestar, but in recent years, they have been cutting back to a more conservative approach that focuses on streamlining operations. 

From a European perspective, it’s interesting to see a Chinese brand suffering from similar challenges. From an outsider looking in, it seems like Chinese brands are only moving in one direction, but could this move by Geely prove otherwise? 

Let us know what you think. 

That’s it for this edition of the Automotive Roundup. See you again at the end of November.