- Volkswagen and Rivian’s $5 billion partnership has birthed the ID.EVERY1, a 20,000-euro ($21,500) EV with 155 miles of range, set to launch in Europe by 2027, blending Rivian’s software with VW’s push against Chinese competitors.
- The deal aids Volkswagen’s recovery from slumping sales in Europe and China, targeting 35,000 job cuts by 2030, while providing Rivian crucial funds as it loses $40,000 per vehicle amid a slowing EV market and potential U.S. subsidy cuts.
- American consumers miss out as the ID.EVERY1 targets Europe only, with no U.S. launch planned, worsened by possible Trump-era tariffs and subsidy losses, highlighting a growing affordable EV gap across the Atlantic.
BI reported earlier this week that Volkswagen and Rivian (RIVN) have joined forces to tackle the rising tide of affordable electric vehicles, with their collaboration yielding the ID.EVERY1, a compact EV priced at 20,000 euros ($21,500) set for a European launch by 2027. This 13-foot, four-seater boasts a 155-mile range and a customizable dashboard, but its real significance lies in the software underpinning it—developed through a joint venture with Rivian, the U.S.-based EV startup known for its rugged electric trucks and SUVs. Volkswagen’s over $5 billion investment in Rivian, announced last year, is more than a financial lifeline for the struggling startup; it’s a strategic pivot for the German automaker as it grapples with collapsing sales in Europe and China, its two critical markets, amid weak EV demand and fierce competition from Chinese rivals like BYD and Xpeng.
Rivian, still bleeding nearly $40,000 per vehicle sold, finds itself at a crossroads as electric vehicle sales growth slows and the incoming Trump administration threatens to axe federal EV subsidies—a move that could further destabilize the startup and its peers, many of whom have already filed for bankruptcy. The partnership with Volkswagen injects vital capital into Rivian’s ambitious plans to produce cheaper EVs, while offering the German giant access to Rivian’s cutting-edge software and EV expertise. This collaboration arrives as Volkswagen contends with a brutal restructuring, including a pledge to slash 35,000 jobs by 2030 following tense union battles last year, all while Chinese competitors prepare to flood Europe with tech-laden, budget-friendly EVs.
The ID.EVERY1 marks Volkswagen’s counterstrike, a vehicle designed to compete head-on with these emerging threats and the affordable EVs from European rivals like Renault and Stellantis. Measuring just 13 feet long, it squeezes practicality into a small footprint, with its 155-mile range sufficient for urban commuters—a segment increasingly targeted by automakers as EV adoption shifts toward cost-conscious buyers. Behind the scenes, the integration of Rivian’s software signals Volkswagen’s intent to modernize its offerings, leveraging the startup’s technological edge to bolster a lineup that must fend off both local and foreign challengers in a rapidly evolving market.
For American consumers, however, the ID.EVERY1 remains a distant prospect. Volkswagen has confirmed its 2027 European debut but offered no timeline for a U.S. launch, leaving the vehicle poised to join a growing list of affordable EVs exclusive to Europe. This transatlantic divide is exacerbated by potential U.S. tariffs on European imports and the looming end of EV incentives under Trump, factors that could cement the U.S. as a bystander while Europe reaps the benefits of this price war. Rivian’s role in this saga underscores a broader trend: legacy automakers like Volkswagen, nearing a century in operation, are leaning on innovative upstarts to navigate an industry in flux, while those same startups rely on established giants to survive their own financial storms. The ID.EVERY1, with its modest price tag and high-tech backbone, encapsulates this symbiosis—a beacon of hope for Volkswagen’s turnaround and Rivian’s endurance, even as its promise remains out of reach for American drivers.
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