Business
Volkswagen Xpeng deal shows threat to Rivian, U.S. automakers
In 1984, Volkswagen partnered with a Chinese automaker because it was required by Chinese law.
Now the German company is partnering with Chinese automakers because it wants to use their technology.
Volkswagen Group today maintains the original joint ventures it made with Chinese automakers in those early days of its foray into what has become the world’s largest car market. But the fact that it is now relying on firms such as Chinese EV maker Xpeng for hardware and software underscore how the balance of power in the automotive industry is shifting toward the companies that produce these now high-value components. Chinese companies are proving they can do it faster, often cheaper, than anyone else.
VW Group, which has for much of the last few decades been a top-selling brand in China, has lately struggled to maintain its position.
Volkswagen’s China profits fell about 45 percent in 2025 — from roughly $2 billion to $1.1 billion. The company said in its annual report that it now faces intense competition from Chinese firms.
It is not a unique issue. Essentially every non-Chinese automaker is watching market share erode in the country as homegrown companies create vehicles that more directly serve what Chinese customers want.
In particular, Chinese buyers have a taste for what are often called “software-defined vehicles.” They are connected and updatable, and essentially allow drivers to do everything through a car they would do through a phone.
“The Chinese vehicle owner can do his banking using voice commands or order takeout to meet him when he arrives at his house, or do any number of things that seem a little unusual to us here in the West, because we just aren’t built that way,” said AutoForecast Solutions analyst Conrad Layson. “However, the Chinese buyer can’t do that in a Chinese-built Volkswagen, so they went where the convenience was. They were able to bring their digital lives along with them into and out of the car.”
Chairman and CEO of Chinese EV manufacturer Xpeng He Xiaopeng visits the booth of the German carmaker Volkswagen during the International Motor Show IAA on Sept. 8, 2025, in Munich, Germany.
Tobias Schwarz | AFP | Getty Images
VW’s own struggles to build an in-house software division have been widely documented — after years of effort and billions spent, the company abandoned its go-it-alone approach and turned to collaborations. Xpeng is a major partner in China, while in North America and elsewhere, VW has partnered with Rivian to build cars.
Xpeng, which makes its own vehicles as well, helped VW’s China division build a hardware and firmware architecture called CEA for the German company’s vehicles in the country.
In February, news broke that VW Group would be the first customer for Xpeng’s VLA 2.0 automated driver assistance system. If it performs as advertised, it will equal or surpass anything made by any other global automaker, Layson said.
Then in March, the first vehicle the two companies co-developed, the ID.UNYX 08, rolled off the assembly line.
The two companies brought the vehicle to production car in 24 months, the CEA architecture in just 18. That is “unheard of in the West,” Layson said. “But that’s China’s speed for you.”
Global automakers typically require a three-to-five-year timeline for a new vehicle, or even a significant refresh.
Rivian and VW are collaborating on just about all of the same things the German automaker is doing with Xpeng. The deal has given Rivian a roughly $6 billion lifeline at a time when the EV maker is ramping up the production of its mid-priced, higher volume R2 SUV.
The comparisons between the two companies indicate how far Chinese automakers have come, said Tu Le, founder of Sino Auto Insights, a firm that researches the Chinese automotive market.
Rivian is working on its own chips, for example. So is Xpeng, but its chip is already being fabbed.
“Xpeng is already there and Rivian wants to get there,” Le said.
Though Xpeng has a technological edge, its partnership with VW does not necessarily pose an immediate threat to Rivian — at least in North America, he added.
Trade disputes and political tension are spurring carmakers to strike these different partnerships. For example, the U.S. has banned certain kinds of Chinese software and hardware for connected vehicles.
The longer-term picture is unclear. Xpeng, like all Chinese automakers, wants to compete globally, and not just through partnerships with other automakers. On March 25, the company started selling two models in Mexico, for example.
Companies such as Tesla, Rivian and Lucid Motors are at the forefront of building these kinds of connected vehicles outside of China.
Still, if Chinese firms can prove they can outpace Western ones in their home market, and export those features to other markets, VW may face a tough choice down the road.
“The question probably you should ask is do they use Rivian stack or Xpeng stack in Europe, because we know that they’re going to use Xpeng in China. And we know that for the time being, they’re going to use, in North America, the Rivian stack. But ultimately whose is better, whose is probably more robust and more appropriate?” Le said.
He added that the long-term risk for a company like Volkswagen — or Stellantis, which has partnered with Chinese automaker Leapmotor — is that they become essentially contract manufacturers, Le said. That would come to fruition if the high-value components like software and technology that define the modern vehicle are increasingly made in China.
“My question might be: If Xpeng hits on all cylinders, will they even need Volkswagen Group?” Le said. “The shoe is on the other foot. And I think more and more people are starting to realize this is real. Their products are significant, and they are a threat to our livelihoods.”
Neither Rivian, VW Group nor Xpeng responded to CNBC’s request for comment or interview.
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ABU DHABI, United Arab Emirates — Zayed International Airport (AUH) in Abu Dhabi is open and operating on Thursday, April 2, 2026, but continues to run on a significantly reduced schedule as the hub gradually recovers from weeks of airspace restrictions and security-related disruptions tied to the ongoing regional conflict in the Middle East.
Etihad Airways, the primary carrier at AUH, is currently operating a limited commercial flight schedule serving around 80 destinations, with approximately 80 to 98 daily departures reported in recent days as part of a phased resumption. Passengers are strongly advised not to travel to the airport unless they have a confirmed booking and have been contacted directly by their airline, as many services remain suspended or heavily adjusted.
Real-time flight tracking and airport data show a mix of departures and arrivals, primarily on Etihad-operated routes, with some additional flights from partners like Air Arabia Abu Dhabi and select international carriers. However, overall capacity remains well below normal levels, with many long-haul and regional services still limited or rerouted.
The airport’s three terminals remain accessible for passengers with operating flights. Security screening and check-in processes continue, though with potentially longer wait times due to heightened protocols and variable passenger volumes. Duty-free shops, lounges and dining options are available in active areas, but some facilities may have reduced staffing aligned with lower flight numbers.
This limited operation follows multiple full or partial ground stops in late February and early March 2026, when regional airspace closures linked to escalating tensions involving Iran forced widespread cancellations. Etihad suspended most commercial flights until early March before beginning a cautious restart on March 6, initially focusing on key routes such as Cairo, Delhi, London, Frankfurt, New York and others. By early April, the airline has expanded its daily schedule further, though full restoration is not expected until conditions in the broader region stabilise.
Foreign carriers have taken varied approaches. Some European and Asian airlines extended suspensions into April or later, while others operate limited services where approved corridors allow safe passage. Travelers holding tickets issued before late February with travel dates up to mid-April may be eligible for free rebooking or refunds under Etihad’s flexible policies.
The disruptions have affected hundreds of thousands of passengers, with ripple effects across the Gulf and beyond. Many have been forced to reroute through alternative hubs or delay travel plans. Abu Dhabi Airports and Etihad have urged customers to keep contact details updated and check flight status frequently via the official Etihad website, the AUH airport site or airline apps.
Weather has occasionally compounded issues, with heavy rain in late March causing additional delays across UAE airports, including AUH. However, as of April 2, conditions in Abu Dhabi are stable, with no major new incidents reported overnight.
For those flying today, current conditions indicate manageable operations for confirmed flights, though delays remain possible due to variable airspace availability and ground handling constraints. Passengers should allow extra time for security and connections, and monitor gate information closely once inside the terminal.
The situation at Zayed International Airport highlights the vulnerability of major Gulf hubs to geopolitical developments. Abu Dhabi’s strategic location makes it a key connector for traffic between Europe, Asia and Africa, so any sustained limitations create worldwide knock-on effects for business, tourism and family travel.
Airport officials continue coordinating with the UAE’s General Civil Aviation Authority and international partners to restore safer, more predictable services. No new major closures have been announced for April 2, and operations are proceeding on the current limited basis.
International visitors or transit passengers should note that entry requirements for the UAE remain unchanged for eligible nationalities, though additional screening or documentation checks may apply amid the heightened security environment.
Business and leisure travelers are reminded that flexibility is essential. Those with non-urgent plans may wish to postpone or explore rebooking options, many of which remain available without penalty for affected tickets.
Etihad has emphasised that it is monitoring the situation continuously and will expand the schedule responsibly as conditions permit. The airline has repositioned some aircraft and prioritised safety in all decisions.
For the most accurate information, passengers should visit zayedinternationalairport.ae or etihad.com, or contact their specific airline directly. Real-time flight status tools and departure/arrival boards inside the airport provide the latest updates.
The resilience of airport staff, air traffic controllers and airline crews has been widely acknowledged during this challenging period. Even with constrained capacity, essential connectivity has been maintained where possible.
Looking ahead, full recovery of operations at AUH will likely extend into late April or beyond, depending on regional airspace normalisation and de-escalation signals. Travelers planning trips in the coming weeks should build in extra buffers and stay informed through official channels.
In the meantime, Zayed International Airport remains open today, April 2, 2026, for those with confirmed flights. With careful planning and direct verification, passengers can still complete their journeys, albeit with added patience required in the current environment.
Safety and clear communication remain the top priorities for Abu Dhabi Airports and its airline partners as the hub works through this period of constrained but ongoing operations.
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McCormick will buy Unilever’s food business for a combination of cash and equity, in a deal that values the Unilever unit at nearly $45 billion, the two food companies announced.
To purchase most of Unilever Foods’ portfolio, including Hellmann’s mayo and U.K. favorite Marmite, McCormick will pay $15.7 billion in cash. Unilever shareholders will own 55.1% of the combined company, while Unilever will hold a 9.9% stake.
The deal will add billions of dollars in annual sales for McCormick and expand the spice giant’s portfolio further into spreads and condiments. It already owns Frank’s RedHot and Cholula hot sauces and French’s mustard and mayo. About 70% of Unilever Foods’ sales come from Hellmann’s and Knorr, a food brand known for its seasonings, stock cubes and soups.
For Unilever, divesting much of its food business allows the company to focus on its personal-care segment, which is growing faster. In December, Unilever spun off its ice cream business, now trading separately as Magnum Ice Cream Co.
The merger with McCormick does not include Unilever’s food business in India.
The two companies expect that the deal will close in mid-2027, pending shareholder and regulatory approval. McCormick is projecting sustainable organic sales growth of 3% to 5% after the two businesses merge.
“This is a combination of two companies already with the support and the discipline and the knowledge of running the business, coming together to execute this integration,” McCormick CEO Brendan Foley said on a joint investor call with Unilever on Tuesday.
He later said on a call with reporters that McCormick had been thinking about a potential deal with Unilever’s food business for “a number of years.”
When the deal closes, Unilever will appoint four out of the 12 members on the combined company’s board. For the first two years, one of those directors will be a Unilever executive.
McCormick plans to maintain its global headquarters in Hunt Valley, Maryland, and to add an international headquarters in the Netherlands, the long-standing home for Unilever Foods. The combined company will also have a secondary stock listing in Europe.
The deal follows a broader trend among Big Food. Many packaged food and beverage companies have been getting leaner through divestitures and spinoffs as consumers buy less of their products. In 2024, nearly half of mergers and acquisitions activity in the consumer products industry came from divestitures, according to consulting firm Bain.
Shares of McCormick fell 6% in morning trading, while Unilever’s stock down 4%, reflecting investors’ hesitance about the mega-merger. Historically, the industry has a mixed record when it comes to such deals — for example, Kraft Heinz or Keurig Dr Pepper.
“We acknowledge the significant strategic merit and likely compelling [earnings per share] accretion from this potential transaction but also concede the hefty likely deal value, execution risk and resultant majority ownership of the combined entity by Unilever shareholders could dampen initial investor enthusiasm,” Barclays analyst Andrew Lazar wrote in a note to clients on March 20, after The Wall Street Journal reported the initial talks between the two companies.
The combination will create a company with approximately $20 billion in sales.
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Business
Elon Musk Nears Trillionaire Status as SpaceX Files for Massive IPO Valued at $1.75 Trillion
Elon Musk, already the world’s richest person with a net worth exceeding $820 billion as of early April 2026, could soon become the first individual in history to surpass $1 trillion in personal wealth if SpaceX completes a blockbuster initial public offering later this year, according to reports and industry estimates.
SpaceX, Musk’s privately held aerospace company, reportedly filed paperwork for an IPO on Wednesday, with an anticipated public debut in June that could value the firm at $1.75 trillion and raise as much as $75 billion — dwarfing the previous record set by Saudi Aramco’s $29 billion listing in 2019, Forbes reported.
The development, highlighted in a LinkedIn post by Forbes Magazine, has reignited discussions about Musk’s unprecedented accumulation of wealth and the potential for him to shatter yet another financial milestone. Musk’s fortune, driven primarily by his stakes in Tesla Inc. and SpaceX, has surged dramatically in recent months, with Forbes estimating it at $839 billion on its 2026 Billionaires List released in March and real-time trackers showing around $823.8 billion as of April 1.
Musk became the first person to reach $500 billion in October 2025, $600 billion in December 2025, $700 billion shortly after, and $800 billion in February 2026 following a series of corporate moves, including SpaceX’s acquisition of his xAI venture. His 2025-2026 wealth gain of roughly $497 billion represents the largest single-year increase ever recorded for any individual.
SpaceX IPO Could Be the Catalyst
A successful SpaceX listing at the projected $1.75 trillion valuation would significantly boost Musk’s holdings. Musk owns approximately 42-43% of SpaceX, making that stake alone potentially worth hundreds of billions more once shares trade publicly. Combined with his roughly 13-20% ownership in Tesla (depending on options and dilutions) and other assets, analysts say the IPO could easily push his total net worth past the $1 trillion threshold.
The filing comes amid strong investor appetite for space and defense-related technology, fueled by SpaceX’s dominance in reusable rockets, Starlink satellite internet, and NASA contracts. The company has achieved multiple milestones, including frequent Starship test flights and rapid growth in its Starlink constellation, which now serves customers worldwide.
If the IPO raises $75 billion as estimated, it would not only provide SpaceX with substantial capital for expansion but also create liquidity for early employees and investors while cementing Musk’s companies as central players in the new space economy.
Musk’s Wealth Trajectory
Musk first topped the Forbes Billionaires List in 2021 and has reclaimed the No. 1 spot multiple times. As of April 2026, he remains far ahead of the competition: Google co-founder Larry Page ranks second with roughly $245-257 billion, followed by Sergey Brin, Jeff Bezos and others in the $200-250 billion range. Musk’s fortune is more than three times that of the second-richest person, according to recent snapshots.
His wealth has been volatile, swinging with Tesla stock performance and private valuations of SpaceX and xAI. Key boosts in the past year included Tesla’s recovery after Musk stepped back from government-related roles to focus on the automaker, a Delaware court ruling restoring valuable stock options, and strategic deals involving SpaceX and xAI.
Real-time trackers like Forbes’ Billionaires Index show daily fluctuations of several billion dollars tied to market movements. Musk’s X (formerly Twitter) activity, product announcements and political commentary often influence sentiment around his companies.
Broader Implications
Reaching trillionaire status would mark a historic first in modern capitalism, raising questions about wealth concentration, taxation of unrealized gains and the role of innovation-driven fortunes in society. Musk has previously downplayed personal wealth discussions, emphasizing instead the mission of making humanity multi-planetary and advancing sustainable energy and artificial intelligence through his ventures.
Critics argue that such extreme wealth underscores inequalities, while supporters point to the technological breakthroughs enabled by Musk’s companies — from electric vehicles reducing emissions to Starlink providing internet in remote areas.
The potential IPO also highlights the maturation of the private space industry. SpaceX’s valuation has climbed steadily from earlier tender offers around $400-800 billion, reflecting confidence in its technology and revenue streams from launches and satellite services.
For Tesla shareholders, any SpaceX listing could indirectly benefit the ecosystem, though the companies operate independently. Musk has repeatedly stated that Tesla and SpaceX pursue separate but complementary goals.
Market and Expert Reactions
Financial analysts reacted to the IPO news with cautious optimism. Some predict strong demand for SpaceX shares given its near-monopoly in commercial space launches and growing Starlink subscriber base. Others caution that public market scrutiny could introduce volatility, as seen with Tesla.
“SpaceX going public would be transformative not just for Musk but for the entire space sector,” one aerospace investment specialist said. “It would provide a clear benchmark for valuations and likely spur more investment in related technologies.”
Social media buzzed with the Forbes post, with users debating the likelihood of Musk hitting $1 trillion and what it would mean for philanthropy, policy or further innovation. Musk himself has not publicly commented on the specific IPO filing as of Thursday, though he frequently engages with followers on X about his companies’ progress.
What Comes Next
SpaceX has not officially confirmed the IPO details, and regulatory filings with the Securities and Exchange Commission will provide more clarity in coming weeks. An June listing would represent one of the fastest timelines from filing to debut for a company of this scale.
Musk’s path to $1 trillion depends on multiple variables: successful execution of the IPO, sustained high valuations for both SpaceX and Tesla, and broader market conditions. Even without the IPO, some projections suggest he could approach the milestone through organic growth in his portfolio.
For now, Musk continues to lead the global wealth rankings by a wide margin while juggling leadership roles at Tesla, SpaceX, xAI and X. His ability to turn ambitious visions into high-value businesses has repeatedly rewritten records.
As the world watches the next chapter in Musk’s financial journey, the reported SpaceX IPO filing adds another layer of anticipation to an already extraordinary story of wealth creation in the 21st century.
Whether Musk becomes the world’s first trillionaire in 2026 or shortly thereafter, the development underscores the rapid pace of innovation in technology, space and artificial intelligence — sectors where his influence remains unmatched.
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