Volkswagen’s U.S. CEO steps down amid turbulence

Pablo Di Si resigns as VW faces challenges, with Kjell Gruner stepping in to lead.

Dec 1, 2024 - 22:01
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Volkswagen’s U.S. CEO steps down amid turbulence

Volkswagen Group of America’s CEO Pablo Di Si has abruptly resigned after just two years in the role. The announcement comes as the automaker wrestles with global financial woes, plant closures, and a bumpy transition toward electric vehicles (EVs).

The resignation is effective immediately, with Chief Human Resources Officer Gerrit Spengler serving as interim CEO until December 12, when Dr. Kjell Gruner officially takes over.

Di Si’s departure was described as being at his “own request,” though reports suggest he faced criticism for strategic missteps in the U.S. market. Ironically, Volkswagen’s American division has been a bright spot for the company this year, with sales up 7% through the third quarter.

Related: Rivian and VW team up to take on the electric future

Who is Kjell Gruner?

Gruner, a 25-year veteran of the automotive industry, brings extensive experience to his new role. He previously served as President and CEO of Porsche North America and held senior positions at DaimlerChrysler and Mercedes-Benz. Most recently, he worked as Chief Commercial Officer at Rivian, giving him insight into both legacy automakers and electric vehicle startups.

Rivian's Kjell Gruner, Chief Commercial Officer, speaks at the opening of the Rivian South Coast Theater in Laguna Beach, CA on Friday, December 8, 2023.

MediaNews Group/Orange County Register via Getty Images/Getty Images

The move is particularly interesting given Volkswagen’s recently announced partnership with the EV startup. The German automaker is investing $5.8 billion in Rivian to leverage the company's software expertise and electrical architecture technologies.

Gruner’s familiarity with the Volkswagen Group and the U.S. market is expected to play a crucial role as the company navigates its next steps. Gunnar Kilian, VW AG Group board member for human resources, called Gruner “an absolute expert for the U.S. market” and emphasized his ability to “expedite growth opportunities.”

Related: Massive strikes threaten Volkswagen amid tensions over layoffs and pay cuts

Challenges on the horizon

Volkswagen’s global struggles paint a stark contrast to its relatively strong performance in the U.S. market. The company is planning to shut down three plants in Germany—an unprecedented move in its history—amid declining demand for EVs and internal financial pressures. Meanwhile, its luxury arm Audi has seen a sharp 17% sales drop in the U.S. this year.

In North America, Volkswagen remains focused on growth. The upcoming launch of its electric SUV brand, Scout, is a key part of that strategy. Gruner’s recent experience at Rivian could also bolster VW’s joint venture with the EV maker to develop advanced software and electronics.

Final thoughts

Gruner steps into his new role at a critical time for Volkswagen. Balancing the needs of the U.S. market with the company’s global challenges will require careful strategy. Beyond the U.S., the automaker faces shrinking EV demand in Europe, mounting financial pressures, and the need to streamline operations.

Whether Gruner can build on the U.S. market’s modest momentum while steering the brand through global difficulties remains to be seen. His experience with both traditional and emerging automakers might give Volkswagen the edge it needs—but the road ahead is far from certain.

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admin As a sports enthusiast from the United States, my passion for sports goes beyond mere entertainment—it is a way of life. I am particularly drawn to the "Big Five" European football leagues: the English Premier League, La Liga, Serie A, Bundesliga, and Ligue 1.