Storm Warning Over Rivian’s European Skies

Rivian envisioned a promising European future, but the transatlantic tax war makes it quite uncertain.

Rivian signed its first profitable quarter at the end of 2024, and its future electric SUV, the R2, embodies hopes for a rise in power. Priced starting at $45,000, this model promises to broaden access to electric mobility made by Rivian.

Designed for global distribution, the R2 is expected in Europe by 2027, where Rivian is starting to deploy a commercial and technical infrastructure. Utility vehicles designed for Amazon are already operating in Germany, accompanied by a few service centers. However, the European future of the R2 could be disrupted by an uncertain business context.

Rivian held hostage by Donald Trump’s whims

The tax war initiated by Donald Trump could seriously complicate Rivian’s export plans. If trade tensions do not ease between the United States and the European Union, and God knows that this is not expected, the import cost of the R2 in Europe could soar, compromising its pricing strategy and attractiveness.

In this context, the recently formed strategic alliance between Rivian and Volkswagen makes perfect sense. The German group has invested several billion euros in the American manufacturer, and both companies plan to share technologies, particularly software, while exploring industrial synergies.

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This could provide Rivian with an industrial entry point in Europe, through Volkswagen’s infrastructures and expertise. Nonetheless, the two partners have always asserted their desire to maintain their independence and brand identity. The idea is not to merge, but to cooperate intelligently with shared technical bases, yet with two distinct identities.

The R2 could therefore, in the long run, benefit from partial production or assembly in Europe, but this would require a profound reassessment of long-established commercial strategies. And it is uncertain whether Volkswagen and Rivian actually have the desire or simply the means to do so…

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