VW Group and Rivian Form Joint Venture for EV Software with $5 Billion Commitment from VW
Volkswagen Group and Rivian are forming a joint venture to develop next-generation electrical architectures and software technology. Announced on June 25, the venture will be equally controlled and co-led by CEOs from both companies. VW Group aims to accelerate the rollout of software-defined vehicles through this partnership. VW will invest $1 billion in Rivian through an unsecured convertible note, converting into Rivian common stock upon regulatory approval, and plans an additional $4 billion investment by 2026. This joint venture complements VW's broader software strategy, which includes collaborations with Cariad and Xpeng in China.
June 2024 Fuel Price Trends: Incremental Increases Persist
Gasoline prices in the U.S. are rising as summer progresses, with the average price just below $3.44 per gallon according to the U.S. Energy Information Administration (EIA). Patrick De Haan from GasBuddy noted that while some states see traditional price cycles, the national average has remained steady despite oil prices exceeding $80 per barrel. Prices are down 13 cents from June 2023.
June Sees Decline in Wholesale Used-Vehicle Prices
Wholesale used-vehicle prices fell 0.3% from May to mid-June on a mix-, mileage-, and seasonally adjusted basis, with the Manheim Used Vehicle Value Index at 196.8, down 8.5% year-over-year. Non-adjusted prices dropped 1.6% from May and 9.5% from the previous year. Jeremy Robb from Cox Automotive noted stronger-than-normal declines in late May continuing into June. MMR prices for three-year-old vehicles fell 0.9%, above the typical 0.2% decline. The average daily sales conversion rate rose to 57.8%, up from May but below June 2019 levels. All major market segments saw year-over-year price declines, with pickups performing best and compact cars worst. EV prices fell 17% from June 2023. Wholesale supply remained stable at 26 days. Rental risk vehicle prices dropped 15.2% year-over-year and 5.7% from May. Consumer sentiment fell to its lowest since June 2023, with negative views on current conditions and vehicle buying conditions. Gas prices increased slightly but were down year-over-year.