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Business Insider
18-05-2025
- Automotive
- Business Insider
VW changed its culture and embraced Rivian's 'startup DNA' in its partnership with the Tesla rival, software chief says
Rivian and Volkswagen's partnership has injected the nearly 100-year-old German automaker with a dose of "startup DNA", according to one of the Tesla rival's top executives. The two companies struck a $5 billion deal last year to form a joint venture to develop next-generation EV technology, and Rivian's chief software officer told Business Insider that he was impressed by how willing the legacy carmaker had been to change its culture and embrace the startup's Silicon Valley vibes. "One of the reasons we really leaned in heavily into the partnership was the willingness of the Volkswagen leadership to change culture within the group," said Wassym Bensaid, who also serves as co-CEO of the joint venture. "They were willing to adopt a much more agile, iterative, innovative approach to the entire development lifecycle, and keep the startup DNA that Rivian brings," the executive added. The partnership will see software and electrical architecture developed by Rivian appear in a range of Volkswagen vehicles, including a $22,500 electric car VW unveiled in March. Like other legacy automakers, the historic German brand has struggled to develop vehicle software that can match the kind of high-tech features offered by Tesla and Chinese rivals like BYD. Volkswagen's in-house software division, Cariad, has faced delays and high-profile glitches despite burning through billions of dollars. The failure to develop advanced software has proved particularly damaging in China, where consumers have come to expect EVs packed with AI-powered features such as voice control, autonomous driving, and even in-car karaoke. Volkswagen's sales collapsed nearly 10% in China in 2024 compared to the previous year. Speaking on the sidelines of The Financial Times' Future of the Car conference, Bensaid said the challenges Volkswagen has faced were far from unique. "The same problem that we need to solve for Volkswagen exists in pretty much every single traditional automaker," he said. Bensaid added that building software-defined vehicles would require legacy carmakers to undergo "deep cultural change" and become flatter and less hierarchical, whilst also hiring "very different talent." "You need very different engineers who know how to build things and not just engineers who manage third-party suppliers in a black-box way," he said. Bensaid said many carmakers would likely find it easier to follow Volkswagen's lead and license software from tech-focused companies like Rivian, adding that he expects tech licensing to become a much bigger part of the EV startup's business in the next few years. "Volkswagen as a company tried to basically make the pivot and get to a software-defined vehicle. And they ended up concluding that a partnership [with Rivian] could be a great way to achieve that," Bensaid said.
Yahoo
15-05-2025
- Automotive
- Yahoo
Uber's robotaxi chief says the company will still need human drivers, but their jobs will look very different
Uber is racing to add robotaxis to its ride-hailing network, even as drivers express concerns. Uber's robotaxi chief said the role of human drivers will soon change, with robotaxis set to dominate in city centres. However, he added that Uber will still need human drivers, with self-driving cars struggling in extreme weather. Uber drivers are already sharing the road with robot rivals — and it could be about to change their jobs forever. Senior VP Andrew Macdonald, who oversees Uber's autonomous vehicle operations, said that although human drivers would remain crucial to its ride-hailing business, they will soon face serious competition from self-driving taxis in city centers. "I am almost certain that there will be more Uber drivers in 10 years, not less, because I think the world will move from individual car ownership to mobility as a service," said Macdonald, who was speaking during The Financial Times' Future of the Car conference. "You'll continue to see that pie grow. But it will look different. You'll have urban cores where a large percentage of trips are serviced by autonomous vehicles. And to some, that will feel like very abrupt change," he added. Uber has struck multiple deals with robotaxi companies to host their autonomous vehicles on its app over the past year. The ride-hailing giant currently allows users to hail Waymo vehicles in Austin and Phoenix, with Atlanta set to follow later this year. CEO Dara Khosrowshahi hailed the Austin launch as a major success in Uber's earnings call last week, telling analysts that the Waymo robotaxis in Austin were busier than "99%" of its human drivers. Uber's aggressive self-driving push — which has also seen it strike deals with Volkswagen, Wayve, and Chinese firms WeRide and — has come as its drivers express growing concern about the impact of driverless taxis on their livelihoods. Uber drivers in Phoenix previously told Business Insider that their earnings are already being hurt by competition from Waymo, with some saying they intend to shun short-distance city center trips in favor of more profitable airport pickups. Macdonald said that he didn't think the growth of the robotaxi industry was having an effect on driver earnings or opportunities just yet. However, he added that he expected drivers would start feeling the impact soon in cities where robotaxis are becoming common, such as Austin, LA, and parts of China. Macdonald said that Uber was pursuing a "hybrid marketplace" with a mix of human and robot drivers handling different types of routes. "You can get an autonomous vehicle on the Uber platform in Austin today, we're available in 37 square miles," he said. "If you're outside that area, you can get a human driver. If you're going from inside that area to outside, you can get a human driver. If you're going to the airport or on highways right now, it takes a human driver. There's a lot of value to having that hybrid," he added. Macdonald said some of these journeys would "move more autonomous over time," but that the shift would create "other opportunities" for Uber drivers. While autonomous vehicles are mostly limited to city centers and urban areas right now, Waymo is waiting on approval to offer airport drop-offs and pick-ups in multiple cities, and has said it is testing its robotaxis on freeways. Despite this, the Uber executive believes there will be some situations that can only be handled by human drivers, such as bouts of extreme weather like blizzards or hailstorms. "Even if an autonomous vehicle can handle 99% of weather cases, there's 1% of cases where maybe those cars need to pull over," said Macdonald. "When you're running a fleet of 400 vehicles in a city, and all of them have to pull over at once, what happens to your ride-hailing service? For us, we send a bunch of humans to pick you up," he added. Uber did not immediately respond to a request for comment from Business Insider. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
15-05-2025
- Automotive
- Business Insider
Uber's robotaxi chief says the company will still need human drivers, but their jobs will look very different
Uber drivers are already sharing the road with robot rivals — and it could be about to change their jobs forever. Senior VP Andrew Macdonald, who oversees Uber's autonomous vehicle operations, said that although human drivers would remain crucial to its ride-hailing business, they will soon face serious competition from self-driving taxis in city centers. "I am almost certain that there will be more Uber drivers in 10 years, not less, because I think the world will move from individual car ownership to mobility as a service," said Macdonald, who was speaking during The Financial Times' Future of the Car conference. "You'll continue to see that pie grow. But it will look different. You'll have urban cores where a large percentage of trips are serviced by autonomous vehicles. And to some, that will feel like very abrupt change," he added. Uber has struck multiple deals with robotaxi companies to host their autonomous vehicles on its app over the past year. The ride-hailing giant currently allows users to hail Waymo vehicles in Austin and Phoenix, with Atlanta set to follow later this year. CEO Dara Khosrowshahi hailed the Austin launch as a major success in Uber's earnings call last week, telling analysts that the Waymo robotaxis in Austin were busier than "99%" of its human drivers. Uber's aggressive self-driving push — which has also seen it strike deals with Volkswagen, Wayve, and Chinese firms WeRide and — has come as its drivers express growing concern about the impact of driverless taxis on their livelihoods. Uber drivers in Phoenix previously told Business Insider that their earnings are already being hurt by competition from Waymo, with some saying they intend to shun short-distance city center trips in favor of more profitable airport pickups. Macdonald said that he didn't think the growth of the robotaxi industry was having an effect on driver earnings or opportunities just yet. However, he added that he expected drivers would start feeling the impact soon in cities where robotaxis are becoming common, such as Austin, LA, and parts of China. Macdonald said that Uber was pursuing a "hybrid marketplace" with a mix of human and robot drivers handling different types of routes. "You can get an autonomous vehicle on the Uber platform in Austin today, we're available in 37 square miles," he said. "If you're outside that area, you can get a human driver. If you're going from inside that area to outside, you can get a human driver. If you're going to the airport or on highways right now, it takes a human driver. There's a lot of value to having that hybrid," he added. Macdonald said some of these journeys would "move more autonomous over time," but that the shift would create "other opportunities" for Uber drivers. While autonomous vehicles are mostly limited to city centers and urban areas right now, Waymo is waiting on approval to offer airport drop-offs and pick-ups in multiple cities, and has said it is testing its robotaxis on freeways. Despite this, the Uber executive believes there will be some situations that can only be handled by human drivers, such as bouts of extreme weather like blizzards or hailstorms. "Even if an autonomous vehicle can handle 99% of weather cases, there's 1% of cases where maybe those cars need to pull over," said Macdonald. "When you're running a fleet of 400 vehicles in a city, and all of them have to pull over at once, what happens to your ride-hailing service? For us, we send a bunch of humans to pick you up," he added.
Yahoo
15-05-2025
- Business
- Yahoo
Trump renews attack on Fed chief after surprise fall in inflation
Donald Trump has renewed his attack on Federal Reserve Chair Jay Powell after a surprise fall in inflation. The US President called for the Fed to cut interest rates as official data showed the US consumer prices index rose by 2.3pc in April, down from 2.4pc in March. Mr Trump wrote in a post on Truth Social: 'No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!! 'THE FED must lower the RATE, like Europe and China have done. 'What is wrong with Too Late Powell? Not fair to America, which is ready to blossom? Just let it all happen, it will be a beautiful thing!' Mr Trump's fresh attack on the Fed, which is independent from the government, comes just weeks after he was forced to row back on threats to sack Mr Powell. Back in April, Mr Trump repeatedly attacked the Fed chair and suggested he would oust Mr Powell because he was not cutting interest rates. Mr Trump told reporters: 'If I want him out, he'll be out of there real fast, believe me.' However, Mr Trump was forced to U-turn on this threat after his words triggered huge market volatility and warnings that government borrowing costs would rocket if Mr Powell was removed. The Federal Reserve voted to hold interest rates at 4.5pc last week and warned of heightened uncertainty over the President's economic agenda. Mr Trump's trade tariffs are widely expected to drive up the price of goods in America later this year, but analysts had expected the CPI rate would remain unchanged in April, because the impact of the tariffs had not yet filtered through. Core inflation, which excludes volatile food and energy prices, held steady as expected at 2.8pc in April. Grocery prices were down 0.4pc on the previous month as the price of eggs, which has become a symbol of the rising cost of living in the world's largest economy, fell nearly 13pc. That's all for today. Thank you for following our live coverage. Read on for more business news and analysis. Bentley has warned that its sales to the US remain on ice as customers await further clarity on the terms of the UK's trade deal. The deal struck between the US and UK last week will reduce potential tariffs of 27.5pc down to 10pc for the first 100,000 cars shipped from the UK. Yet Frank-Steffen Walliser, chief executive of the British luxury carmaker, said uncertainty surrounding the allocation and timing of the quota was harming business. He told the Financial Times' Future of the Car summit: 'It means all your customers say 'I won't buy a car now', especially our customers, our clients don't need a car at the moment. 'It is super hard on the business at the moment, nobody's moving.' He added: 'Is the 100,000 for Bentley? I can live with that. '(But) I assume our colleagues from Jaguar Land Rover would also like to have a chunk'. Mr Walliser said the perception of lower tariffs in the future was 'the worst thing that can happen to a running business'. He added that he was supportive of Britain's attempts to negotiate a deal, saying: 'Don't get me wrong, I'm not complaining, but it is not operational.' Fears over a Federal Reserve headache of recession paired with persistent inflation have been cooled, an economist has said. Chris Zaccarelli, chief investment officer of Northlight Asset Management, said: 'And just like that, the markets' twin fears - a tariff-induced recession and sticky inflation - have been greatly assuaged. 'Fears of slowing growth and a recession caused by punitive tariffs drove markets lower in the first week of April. 'But they've rebounded on the heels of a tariff pause and a Chinese trade breakthrough, and now a better-than-expected inflation report removes the last big overhang for the market.' Jordan Rizzuto of GammaRoad Capital Partners was less bullish in his assessment, saying little has changed in terms of inflation and monetary policy expectations. He said: 'We expect the Fed to continue to be in a wait-and-see mode until we see some further materialisation of pricing pressures that may come from the new trade policies.' Donald Trump has mooted 'multibillion dollar' deals with Amazon and Oracle which could be announced later this week. The US president told the forum in Riyadh: 'This week, there are multibillion dollar commercial deals with Amazon, Oracle, AMD, they're all here, Uber, Qualcomm, Johnson and Johnson and many many more.' Mr Trump also hinted at a 'breakthrough agreement' with China, claiming China had agreed to 'open up' to the US for trade and 'everything else'. You can watch the speech here. Donald Trump has singled out the chief executive of Nvidia for praise and thanked him for investing in the United States. Speaking at a Saudi-US Investment Forum in Riyadh, the US president sought out Jensen Huang from the crowd. He said: 'Nvidia is here. Thank you very much because he is putting in $500bn. 'Where is Jensen (Huang)? Tim Cook (chief executive of Apple) isn't here but you are. 'What a job you have done, they say he has got 99pc of the chip market, that is not easy to beat… we are proud to have you in our country.' The chip designer Nvidia has said it will build up to $500bn (£378bn) worth of artificial intelligence infrastructure in America over the next four years. The US president has encouraged foreign companies to move production to the US to avoid tariffs. The White House policy communications director has praised Donald Trump for US inflation falling 0.1pc in April. Jacki Kotkiewicz, in a message reposted by a White house account, wrote on X: 'Inflation is down thanks to President Trump!' In another post from the White House account itself, the president was credited with achieving a third straight month of better-than-expected inflation data. Elizabeth Warren, a Democrat senator, was less forthcoming in her praise, saying: 'Consumers and businesses will feel little relief from President Trump folding to Xi Jinping and are bracing for supply chain disruptions and even empty shelves.' The S&P 500 and Nasdaq indexes have turned higher for the year, reversing trillions of losses brought on by Donald Trump's 'liberation day' tariffs which spooked investors last month. The tech-heavy Nasdaq has climbed 1.5pc today, taking the index to 0.8pc up for the year, while the S&P 500 rose 0.9pc to log a gain of 0.2pc in 2025. Scott Ladner of Horizon Investments said the reversal came from the unwinding of political rather than economic decisions. He said: 'With the 'getting off the schneid' moment of the UK announcement followed by the dramatic de-escalation of the China trade situation over the weekend, the man-made market crisis is now in the process of being un-man-made.' The Nasdaq had fallen 23pc by April 8 from its Feb 19 high, while the S&P nosedived 11pc in two sessions before rising 17pc from April 14 to May 2 - rising for nine straight sessions, its longest winning streak in two decades. The European Economic Commissioner has expressed hope that a temporary trade deal between the US and China will prevent the EU from being flooded with Chinese goods. Speaking after a meeting of EU finance ministers, Valdis Dombrovskis said: 'Obviously this easing of trade tensions between the US and China is heading in the right direction but it is worth noting that the 30pc tariffs which the US would continue to apply to Chinese goods, also in this 90-day period, is still quite a high tariff level and correspondingly trade distortive. 'But of course it may ease somewhat the trade diversion concerns we had.' It comes after Ursula vonLeyen, president of the European Commission, urged China on April 8 to ensure goods were not redirected from the US to the EU. The bosses of UK companies are seeking to secure trade in markets outside the EU, new data show despite Chancellor Rachel Reeves's suggestion that the bloc was Britain's most important trading partner. British businesses are increasingly targeting markets such as China, the US and Australia, according to Santander. Meanwhile, Ireland and Italy have fallen out of the top ten export destinations for the first time since 2022. Ms Reeves last month warned the US that Europe was 'arguably more important' as a trading partner to Britain than the US. However, the US remains Britain's second most important export destination despite the increased trade tensions with the world's largest economy, the Santander spring trade barometer showed. It comes after the UK became the first nation to sign a trade agreement with the US following the so-called 'liberation day' tariffs announced last month. Some 54pc of UK companies considered the US a top export market, falling just behind Germany, which slipped from 59pc to 55pc. Jane Galvin, Head of Corporate Clients at Santander UK, said: 'As the UK faces ongoing domestic challenges, businesses are looking beyond our borders for growth opportunities. There is a real urgency for companies to tap into international markets, despite the more difficult and often unpredictable global landscape. 'While Germany and France are still high on the list of markets UK firms do business with, there is a clear downward trend in UK-EU trading activity. As these companies plan their future growth, they are looking towards the likes of China, the US, Canada and Australia – and they need support finding the right partners, as well as guidance on new markets.' Global free trade is in a state of crisis, the head of the World Trade Organisation has warned during a meeting with the Japanese prime minister. Ngozi Okonjo-Iweala, the WTO's director-general, told Shigaru Ishiba that she is relying on Japan to be a champion of open markets amid Donald Trump's overhaul of world commerce. She said: 'Trade is facing very challenging times right now and it is quite difficult. 'We should try to use this crisis as an opportunity to solve the challenges we have and take advantage of new trends in trade.' Japan, as 'a champion of the multilateral trading system' must help maintain, strengthen and reform the WTO, she said. The value of the pound rose after an unexpected decline in US inflation meant traders maintained bets on cuts to interest rates. Sterling was up 0.4pc against the dollar at $1.322 as traders continued to price in two reductions in borrowing costs by the Federal Reserve before the end of the year. The US consumer prices index rose by less than expected at 2.3pc in April, down from 2.4pc in March, according to the Labor Department. Peter Cardillo, chief market economist at Spartan Capital in New York, said: 'The numbers were a little higher than I was looking for, but ... year-to-year, 2.3%, that's not bad. 'The report basically indicates that the Fed needs to be very cautious and that the stand that they have taken is probably the right course, for now.' Donald Trump and Saudi Crown Prince Mohammed bin Salman have signed a strategic economic partnership agreement in Riyadh. The partnership includes deals for energy, mining, and defence. In awkward looking exchanges, the US Defence Secretary Pete Hegseth and Energy Secretary Chris Wright exchanged memorandums of understanding with their Saudi counterparts. US stock indexes lacked direction after the unexpected decline in inflation last month. The S&P 500 edged up less than 0.1pc to 5,846.84 while the tech-heavy Nasdaq Composite gained 0.4pc to 18,787.02. However, the Dow Jones Industrial Average fell 0.5pc to 42,217.05. The cost of federal borrowing in the US fell after inflation declined unexpectedly in April. The yield on 10-year US Treasury bonds – a benchmark for the cost of servicing sovereign debt around the world – slipped below 4.45pc after consumer prices grew at a slower-than-expected pace of 2.3pc last month. Money markets still indicate there will be two cuts by the Federal Reserve this year following the data, with the first cut expected in September. Falling energy prices helped to 'keep a lid on US inflation' in the face of rising rents, an economist has said. Erik Norland of CME Group attributed the unexpected decline in CPI to tumbling energy prices and the lack of discernible impact of tariffs. He said: 'A 3.7pc year on year decline in energy prices helped to keep a lid on US inflation in April with motor fuel prices falling by 11.5pc and airfares falling 7.9pc year on year. 'Tariffs had no noticeable effects on new or used car and truck prices.' Applying upward pressure, shelter costs - which covers rents and owners' equivalent rent - were up 4pc year on year which was 'primarily responsible for keeping inflation above the Fed's 2pc target'. Egg prices in the US declined at their fastest pace in more than four decades during April. Eggs have become a symbol of the rising cost of living in the world's largest economy and have become a target for President Donald Trump. However, prices dropped by 12.7pc last month following a shortage caused by the culling of millions of birds during the biggest avian flu outbreak in a decade. According to the Labor Department, the typical price for a box of a dozen eggs fell back to $5.12, after hitting a record high of $6.22 in March. Still, the April figure is 79pc higher than the same month a year earlier, when the price averaged $2.86 per dozen. JP Morgan has scrapped its prediction that the US will enter a recession this year after the trade breakthrough between the US and China. The Wall Street giant's chief economist Michael Feroli said: 'The administration's recent dialing down of some of the more draconian tariffs placed on China should reduce the risk that the US economy slips into recession this year. 'We believe recession risks are still elevated, but now below 50pc.' Mr Feroli predicts the US economy will grow 0.6pc in 2025, up from 0.2pc previously. He also sees personal consumption expenditures (PCE) price index – the Fed's preferred measure of underlying inflation – to hit 3.5pc rather than 4pc. He added: 'Our updated labour market outlook is less demanding of immediate action to stem employment risks; for the Fed, we are pushing back the timing of the resumption of rate cuts from September to December.' Goldman Sachs also reduced its US recession risk forecast to 35pc from 45pc. US stock index moved higher on Tuesday after the lower-than-expected inflation figures, keeping alive expectations that the Federal Reserve will lower borrowing costs this year. The S&P 500 was up 7.5 points, or 0.1pc, in premarket trading, while the Nasdaq 100 was up 70 points, or 0.3pc,. reversing earlier losses. The Dow Jones Industrial Average was still down 118 points, or 0.3pc. Traders believe the US Federal Reserve will be able to cut interest rates twice this year, by September and December at the latest. The drop in inflation did little to alter trades on money markets heading into the release of the latest consumer prices index data. The rate of US inflation fell unexpectedly last month as Donald Trump's tariff onslaught on global trading partners were announced. The consumer prices index dropped to 2.3pc in April, compared to 2.4pc in March, according to the Labor Department. Analysts had forecast it would remain unchanged. Core inflation, which excludes volatile food and energy prices, held steady as expected at 2.8pc. President Trump announced his 'liberation day' tariffs on April 2, raising fears of a downturn in global growth, although economists have been split on the potential impact on inflation. Financial markets may be riding high on the mood music around US and China trade talks but the US is not 'out of the woods yet', an economist has warned. Jim Reid at Deutsche Bank said investors should note that a low tariff rate still placed downward pressure on growth and that the direction of travel for tariffs can turn on a dime, for better or for worse. He said: 'The dramatic reduction in tariffs is only a temporary one for 90 days, but as far as markets are concerned, there's now a belief that the worst of the trade war has passed, and that the trend is now towards de-escalation. 'There's little doubt about how positive this news is, but the US is not out of the woods yet.' He said a 'decent amount of de-escalation' to 15pc was consistent in previous forecasts with only a 'subdued, barely positive level of growth', noting that further tariff cuts could create tailwinds. Christopher Hodge at Natixis also noted: 'When all is said and done, tariffs will still be dramatically higher and will weigh on US growth.' Donald Trump's top trade official said the US was moving quickly making deals with other countries a day after announcing a de-escalation of tariffs with China. US trade representative Jamieson Greer said he would speak to the Indian commerce secretary today before leaving for South Korea for more trade talks. 'We're moving as quickly as we can on trade deals,' Mr Greer said in an interview with CNBC. He added that President Trump would consider a change in his tariff regime with China if he saw progress on fentanyl. The US announced a 20pc tariff on China in February which Mr Greer said was still in place following the reduction in duties announced on Monday. However, he added that it would take time to end non-tariff trade barriers with China. Wall Street has been subdued ahead of the bell after a spirited rally on yesterday's announcement of a trade truce between the US and China which far exceeded expectations. The S&P 500 was down 0.3pc in premarket trading after finishing 3.6pc up yesterday, while the Nasdaq slipped 0.2pc and the Dow Jones slumped 0.6pc. Evelyne Gomez-Liechti, a strategist at Mizuho International, said the 'trade relief rally' had stalled overnight because of 'profit-taking and consolidation ahead of today's CPI report.' April consumer price inflation data is set to be released at 1.30pm UK time. Jochen Stanzl at CMC Markets said: 'Today's inflation data is highly anticipated, as higher figures could further diminish the outlook for additional rate cuts - potentially leading to no cuts at all by 2025.' Donald Trump will be frustrated by the Federal Reserve this year which will cut interest rates only once, according to Barclays. The British bank has scaled back its prediction for the number of times the US central bank will reduce borrowing costs after the de-escalation of the trade war between Washington and Beijing. President Trump has repeatedly urged the Federal Reserve to cut interest rates, attacking its chairman Jerome Powell, who he has accused of being 'too late' at addressing changes in the economy. But economists at Barclays reduced their forecasts for Fed rate cuts this year from two to just one in December after removing a forecast for a 'mild recession' in the world's largest economy. They expect three cuts in 2026. It had predicted a downturn after President Trump announced his 'liberation day' tariffs last month. On Monday, the US and China announced a dramatic de-escalation of their trade war, with Washington lowering tariffs on Chinese goods from 145pc to 30pc and Beijing cutting duties on American products from 125pc to 10pc. Barclays chief US economist Marc Giannoni said the lower tariff rates on China would be 'considerably less disruptive for domestic activity, labour markets, and less inflationary, than prior rates'. He said: 'Although we still think that the US activity growth is poised to slow in coming quarters, our baseline no longer features the mild recession in the second half of 2025 we had been penciling into our forecasts following the 'liberation day' tariff announcement.' Xi Jinping has sought to strengthen ties with Latin America and the Caribbean through billions in credit and new infrastructure development, stepping on US toes in the region. The world's second-largest economy will open a $9.18bn (£6.95bn) credit line with Community of Latin American and Caribbean States' (CELAC) members and ramp up imports from the region, the Chinese president told delegates in Beijing. Xi said: 'China and the countries of Latin America and the Caribbean are important members of the Global South. Independence is our glorious tradition, development and revitalisation our natural right, and fairness and justice our common pursuit.' Beijing has stepped up efforts in recent years to usurp the US as the region's primary development partner in the wake of Donald Trump's 'liberation day' levies. The Chinese leader reiterated Beijing's stance that nobody wins a trade war and that 'bullying or hegemonism only leads to self-isolation', adding that China stands ready to 'join hands' with Latin countries 'in the face of seething undercurrents of pure China also sees courting the region as a way to squeeze self-ruled Taiwan, with seven of the 12 countries that have cut diplomatic ties with the island hailing from Latin America or the Caribbean. Two-way trade between China and the CELAC bloc was $515bn in 2024, according to Chinese customs data, up from $450bn in 2023 and just $12bn in 2000. Porsche is bracing for a slowdown in sales owing to customers rushing through purchases to beat Donald Trump's auto tariffs. Barbara Frenkel, the German carmaker's chief executive, said it remains to be seen whether drivers would return to Porsche after the lull in demand. She told a Financial Times conference in London: 'There will be a dip, and then we need to see how the consumer will come back.' Porsche is assessing price increases as it will not be able to absorb the whole cost of the current tariffs, Ms Frenkel said, adding that fluctuating tariff levels was breeding inertia. She said: 'If I would be a customer, I would not understand it. 'If the whole industry needs to raise the prices, and you have a new baseline, this is a new game - but in the time between there will be a dip.' The brand, which is controlled by Volkswagen, has seen waning demand for electric vehicles in China of late which has been exacerbated by tariffs. A host of business leaders have joined Donald Trump on a visit to Saudi Arabia, including Elon Musk, Sam Altman and Boeing's Kelly Ortberg. The US president and his entourage have met with Saudi dignitaries in the kingdom's royal court, including the crown prince Mohammed bin Salman. We have live updates from the president's diplomatic trip to the Gulf here. This embedded content is not available in your region. Credit: Reuters The chief executive of BlackRock said tens of trillions of dollars in financial firepower is sitting idle in cash as investors remain spooked by scattergun tariffs. Larry Fink, who runs the world's largest asset manager, said the uncertainty brought on by Donald Trump's trade policies had kneecapped confidence and spurred capital flows out of the US. He told delegates at the Saudi-US Investment Forum in Riyadh: 'There is €12 trillion sitting in bank accounts in Europe. In the United States, there's $11 trillion sitting in money markets funds. 'When there is uncertainty, you are going to keep more and more money in cash and that is what we witnessed.' The veteran financier made the comments shortly after Mr Trump arrived in Saudi Arabia to kick off a four-day tour of the Gulf region. Mr Fink said many investors were still overweight on the US, the realisation of which had fuelled a 'modest reallocation' away from US assets which has benefited Europe, the Gulf region, India and Japan. The dollar is set for an extended downward trend as investors realise the world has 'over-invested' in US assets, a foreign exchange strategist has said. Kit Juckes at Societe Generale said while the dollar may have gained on recent optimism over US and China trade talks, tariff shocks have caused lasting damage to the greenback's reputation. He said: 'I think we will see a long-term trend where the dollar will weaken as people realise that we've over-invested in US assets in a big way. And that's the sort of tectonic shift, if you like. 'The yuan is clearly the biggest currency beneficiary at the moment.' China's yuan has scaled a six-month high, while the dollar hovered near a one-month high against a basket of currencies but remained below its pre-April 2 tariff announcement levels. Chris Beauchamp of IG said investors would return to the American markets armed with greater skepticism of US exceptionalism. He said: 'You still get that sense from people generally that for the moment, we will be putting more money back to work in the US, but we won't be going back to this crazy 'US exceptionalism trade' of December of just whatever you do, it has to be in the US. 'We've got to be a bit more circumspect now.' Ken Griffin, chief executive of Citadel, has said it may have been better to sit on the sidelines in cash rather than trade amid tariff turmoil. The billionaire American hedge fund manager, who has been a vocal supporter of Donald Trump, told Bloomberg: 'It's been a really difficult time for fundamental investors because so much of the value of the companies that we invest in is being dictated by very quickly changing policies from Washington. 'In retrospect, perhaps holding cash would've been the best way to navigate this. But that's so contrary to our culture of always trying to be on the offence, always trying to find ways to create value in the markets.' The retreat from the brink of trade war has helped the S&P 500, Nasdaq and Dow Jones recoup all losses incurred following Mr Trump's tariff announcements on April 2, which sent stock markets spiralling and saw the safe haven of gold reach record highs. Mr Griffin has warned the Republican president that his tariff policy would come at a 'real price' in the midterm elections. Donald Trump's trade policies could have a knock on impact on EU unity and the war in Ukraine, according to Telegraph readers. Here is a selection of views from the comments section below. You can join the debate here: China may have to offer concession to unblock 'increasingly challenging' negotiations with the US ahead, an economist has warned. Xiaoqing Pi at Bank of America said China had so far appeared to remain resolute in its negotiating stance, budging over very little. She said: 'Notably, China seemingly has not yet made any major concessions, or pledged to purchase US products.' Ms Pi and her team spy levers which Xi Jinping could pull to further ease tensions between the two superpowers. 'In our view, the negotiations from here could become increasingly challenging, referencing to US trade deals with other trading partners,' she said, adding: 'China may consider offering a stricter crackdown on fentanyl, more purchases of energy products and relaxing curbs on rare earth embargo, in exchange of further tariff reductions and technology sanction relaxation' Scott Bessent, the US treasury secretary, said the two countries 'had a very robust and productive discussion on steps forward on fentanyl' and mooted 'purchasing agreements' in the pipeline. Chinese shares notched up marginal gains after initial euphoria fizzled out over a trade truce with the US. An agreement between US and Chinese officials after weekend talks in Geneva led to a rally in global markets and the dollar. However, fears that further negotiations could prove a slog still lingered and weighed on investor sentiment. China's blue-chip CSI300 Index edged up 0.1pc, while the Shanghai Composite Index added less than 0.2pc. In Hong Kong, the Hang Seng China Enterprises Index lost 2pc and the benchmark Hang Seng Index weakened 1.9pc, retreating from a six-week high. The Hang Seng Tech Index fell 3.3pc. The US is less likely to suffer a recession this year, a Wall Street banking giant has said, after the Trump administration made a breakthrough in trade talks with China. Goldman Sachs cut its recession forecast for the US from 45pc to 35pc after Washington and Beijing agreed to heavily scale back duties on each other for 90 days. Global brokerages had raised their odds of a US and global recession last month as Donald Trump's tariff tirade threatened to weaken business confidence and slow growth. However, Goldman also hiked its predictions for US GDP growth in the wake of the China agreement, upping its forecast by 0.5 percentage points to 1pc. Analyst Jan Hatzius said: 'The rationale for rate cuts shifts from insurance to normalisation as growth remains somewhat firmer, the unemployment rate rises by somewhat less, and the urgency for policy support is reduced.' Goldman Sachs additionally raised its year-end target for the S&P 500 stock index to 6,100 points, up from 5,900 amid the lower tariff and recession risks. The index closed up 3.3pc at 5,844.19 points on Monday. Scott Bessent said Europe suffers from a 'collective action problem' which has hampered progress on a US trade deal with the bloc. The US treasury secretary said an agreement between the two sides 'may be a bit slower' as America pushes to secure deals with trading partners after Donald Trump's tariff onslaught. Speaking at a Saudi-US Investment Forum in Riyadh, Mr Bessent said: 'My personal belief is Europe may have a collective action problem; that the Italians want something that's different than the French. 'But I'm sure at the end of the day, we will reach a satisfactory conclusion.' Donald Trump claimed on Monday that the European Union is 'nastier' than China as he switched the focus of his global trade war. On Monday, the US and China announced a dramatic de-escalation of their trade war, with Washington lowering tariffs on Chinese goods from 145pc to 30pc and Beijing cutting duties on American products from 125pc to 10pc. It comes nearly a week after Britain secured a trade agreement with the US which lowered the impact of tariffs on the economy. Donald Trump was met by Saudi Crown Prince Mohammed bin Salman Al Saud as he arrived in Riyadh for the Saudi-US Investment Forum. It is the US president's second official overseas visit since returning to the White House in January, having flown to the Vatican for Pope Francis's funeral last month. Scott Bessent said he was 'optimistic' on trade and suggested that there could be less friction in the movement of goods following Donald Trump's tariff onslaught. The US treasury secretary said President Trump 'wants to reorder the US engagement with other countries'. He told the Saudi-US Investment Forum in Riyadh: 'The tariffs, the non-tariff, trade barriers, currency manipulation and subsidies of labour and capital are coming down quickly. 'So I'm optimistic that on trade we could actually see more frictionless trade globally.' The US treasury secretary also said the President's 2017 Tax Cuts and Jobs Act would be passed this summer and become permanent. He said: 'We will no longer be talking about tax cuts. Once this bill becomes permanent this will be the law of the land for the US and there will be great certainty on the tax side.' He added that the trade talks between the US and China in Geneva have resulted in a mechanism to avoid escalation. The US does not want a generalised decoupling between the two largest economies in the world, he said. It came as President Trump arrived in Riyadh for his second overseas trip since returning to office. Stock markets lacked direction in London as trading got underway despite the trade breakthrough between the US and China. The FTSE 100 was down about 0.1pc to 8,601.31 while the mid-cap FTSE 250 rose 0.1pc to 20,647.66. China's foreign minister appeared to take a swipe at the US a day after Beijing and Washington announced sharp reductions in tit-for-tat tariffs. Wang Yi told a forum for Chinese and Latin American nations in Beijing that 'a certain major power is obsessed with the idea that might makes right'. He said the country in question is 'using tariffs as a weapon to bully other countries'. He then urged participants to 'join hands to uphold our legitimate and lawful rights and interests'. British companies cut jobs for a third month in a row, official figures show, amid rising taxes and the uncertainty brought by Donald Trump's trade war. The number of payrolled staff dropped by 33,000 in April and is down by 106,000 so far this year to 30.3m, according to the Office for National Statistics (ONS). Bosses faced a double blow in April from the increases in employer National Insurance contributions and the rise in the minimum wage. This came just as President Trump announced his 'liberation day' tariffs which rocked business confidence and raised fears of an economic downturn. Employers also advertised for fewer new staff, with the number of vacancies down 42,000 in the three months to April compared to the previous quarter. It was the 34th consecutive quarterly decline. ONS director of economic statistics Liz McKeown said: 'The broader picture continues to be of the labour market cooling, with the number of employees on payroll falling in the first quarter of the year. 'The number of job vacancies has also fallen again, with the rate of decline increasing in the last few months.' The US will cut its tariffs against Chinese shipments of small parcels, the White House has said in the latest de-escalation of the trade war between the world's two largest economies. The so-called de minimus exemption applies to items valued at up to $800 and sent from China via postal services. A White House executive order said the US would cut the de minimum tariff on China shipments from 120poc to 54pc, with a flat fee of $100 from May 14, down from $200 that had been planned to come into effect in June. The packages were previously able to enter the United States duty free and with minimal inspections, prompting accusation from retailers that they were not operating in a level playing field. The number of shipments entering the US through the tax-free channel exploded in recent years with more than 90pc of all packages coming via de minimis. Of those, about 6pc came from China, led by direct-to-consumer retailers such as Temu and Shein. Donald Trump's tariffs were aimed at stopping Chinese fashion firms Shein and Temu from flooding the market with clothes and goods at low prices. Fast fashion giants rely on the de minimis rule, a century-old trade law that lets them to offer their products very cheaply. China is understood to have lifted its ban on airlines taking deliveries from Boeing after a breakthrough in trade talks with the US. Officials in Beijing have started telling domestic carriers and government agencies to resume deliveries from the American planemaker after a month-long stand-off, according to Bloomberg. It comes a day after the US and China announced a dramatic de-escalation of their tariff war, with US duties on Chinese goods falling from 145pc to 30pc and Beijing's levies on American goods dropping from 125pc to 10pc. China barred its airlines from taking all existing orders from US manufacturing giant Boeing after the launch of Donald Trump's trade war. Beijing also told the country's carriers not to buy any aircraft-related equipment or parts from other American companies. Boeing, one of the top US exporters, was later forced to fly three 737 Max jets back from China. It had also faced threats that orders would be cancelled from the likes of Ryanair. In a letter to top US lawmakers, Michael O'Leary criticised Washington's trade war with Beijing and warned that a 'material' impact on the price of aircraft could prompt his company to take its business elsewhere. Thanks for joining me. China was reported to have lifted its ban on airlines taking Boeing deliveries after the de-escalation in trade war with the US. Domestic carriers have been told by officials in Beijing that they can restart accepting planes ordered from the planemaker after a month-long ban, according to Bloomberg. 'Nasty' EU finds itself at the back of Trump's trade deal queue | Brussels is being left out in the cold as the US strikes agreements with China and Britain Lloyds snubs Reeves's push to back British companies | Lender's pension arm is refusing to support Chancellor's investment pact Rip up spending rules to stop Reform, Burnham urges Reeves | Greater Manchester Mayor says the north risks being left behind amid lack of investment Ben Marlow: Trump's war on drugmakers will blow up in his face | Ordinary Americans risk bearing the brunt of Maga's big pharma crackdown Adam Smith: Here's why Reeves will hate Labour's immigration crackdown | Lowering the number of migrants coming into the UK will directly affect the Chancellor's fiscal headroom Asian shares advanced after China and the United States announced a 90-day truce in their trade war. Tokyo's Nikkei 225 jumped 1.8pc to 38,305.36 with carmakers among the big gainers. Toyota was up 3.9pc and Suzuki was 4.4pc higher. Nissan added 3.6pc after Japan's national broadcaster NHK said it plans to lay off more than 10,000 of its workers, raising the total to 20,000, as part of its restructuring efforts. The company was due to announce its financial results for the last fiscal year later Tuesday. The Kospi in South Korea slipped 0.1pc to 2,605.63. Hong Kong's Hang Seng, which gained 3pc a day earlier after Chinese and U.S. officials announced the agreement to pause tariffs and reduce them, fell 1.4pc to 23,210.34 on heavy selling of technology shares. The Shanghai Composite index edged 0.2pc higher to 3,376.49. Taiwan's Taiex jumped 1pc to 21,330.14. Australia's S&P/ASX 200 climbed 0.5pc to 8,274.70. Wall Street stocks made significant gains, with the S&P 500 index jumping 3.3pc, to 5,844.19. The tech-focused Nasdaq Composite advanced 4.4pc to 18,708.34, and the Dow Jones Industrial Average rose 2.8pc, to 42,410.10. Treasury yields jumped on expectations the US Federal Reserve will not have to cut interest rates as deeply this year in order to protect the jobs. The yield on 10-year US notes rose to 4.474pc from 4.403pc a day earlier. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
14-05-2025
- Automotive
- Yahoo
Rivian and VW's new $22,500 car proves cheap EVs don't have to be low-tech, the Tesla rival's software boss says
Rivian is teaming up with Volkswagen to make the German brand's cheapest ever EV: the $22,500 Its software boss told BI it's proof that cut-price electric cars don't need to be "low-tech." The race to build more affordable EVs is heating up, with Slate Auto recently launching a $25,000 electric truck. Rivian and VW are teaming up to build more affordable EVs, but that doesn't mean they're planning to skimp on high-tech features. The Tesla rival is partnering with Volkswagen to develop a $22,500 electric car, and Wassym Bensaid, the company's chief software officer, said the upcoming EV won't compromise on tech despite its ultra-low price point. VW and Rivian announced a deal last year that will see the German car giant invest over $5 billion in the startup and form a joint company to develop next-generation software and EV technology, with Bensaid and VW exec Carsten Helbing as co-CEOs. In March, VW unveiled the a compact electric hatchback that will be the first VW vehicle to include software developed by the joint venture. The 13-foot-long, four-seater EV is set to go on sale in Europe by 2027 for around 20,000 euros ($22,500). VW has not said whether it has any plans to bring it to the US. "It's something which is extremely close to my heart because it's a way to bring that technology into many more cars," Bensaid told BI. "Inexpensive cars shouldn't have low technology, and this is the beauty of the setup that we're enabling through the joint venture," said the Rivian executive, who spoke to BI on the sidelines of The Financial Times' Future of the Car conference. Bensaid said the affordable hatchback would leverage Rivian's software architecture to cut costs. Rather than use individual computers to control components like seats, lights, and doors, all the features will be handled by a central computer built on Rivian's technology, which Bensaid would allow VW to save money by using fewer parts and simplifying the design. The will not be the first vehicle to use technology developed by the Rivian-VW joint venture — that will be Rivian's R2, which is set to launch next year — but it is a huge step for both companies. A lack of affordable EVs remains one of the main reasons customers are reluctant to go electric, and VW is betting that its cheapest ever battery-powered offering will help fill that gap. They're not the only ones making that bet. Startup Slate Auto caused a stir last month when it unveiled a $25,000 pickup truck, which is set to go on sale in the US in 2026. The Slate truck has bucked the trend of vehicles becoming more computerized and packed with smart technology. The base model lacks power windows, a radio, and any kind of built-in infotainment system, with Slate's CEO telling BI that the company had focused on simplicity to keep the price as low as possible. So far, consumers haven't seemed that bothered by the lack of bells and whistles, with the Jeff Bezos-backed startup receiving 100,000 refundable $50 reservations in just two weeks. When asked about Slate's approach, Bensaid said Rivian welcomes more competition in the EV market but has made a "different choice" in how it approaches making electric cars more affordable. "Inexpensive cars shouldn't be cars with limited features," he said, adding that Rivian believed it was possible to deliver a "rich user experience" at a low price point by making vehicle technology more efficient. "That is our approach. We would like to enable choice for customers, but without such severe compromise in terms of the overall experience," Bensaid said. Read the original article on Business Insider
