• VW unveiled a $21,500 EV on Wednesday, but don't expect it to come to the US anytime soon.
• The compact ID.EVERY1 will be the first car to incorporate software from EV startup Rivian.
• The two companies struck a $5 billion partnership last year, and both face their own looming challenges.

Volkswagen and Rivian are teaming up on an ultra-cheap EV, and once again, Americans can only stare across the Atlantic in envy.

After several months of teasing, Volkswagen unveiled the ID.EVERY1 on Wednesday, with a version of the compact electric car set to go on sale for 20,000 euros ($21,500) in Europe by 2027.

The 13-foot long, four-seater EV packs a lot into a small package, including 155 miles of range and a customizable dashboard — but the most interesting thing about it is what's going on behind the scenes.

The production version of the ID.EVERY1 will be the first vehicle to include software developed with EV startup Rivian, a Volkswagen spokesperson confirmed to Business Insider.

The two companies announced a deal last year that would see the German car giant invest over $5 billion in Rivian and form a joint venture to develop next-generation software and EV technology.

That deal has quickly become a vital part of Volkswagen's strategy to turn its crisis-stricken car business around.

The nearly century-old automaker has seen sales collapse in Europe and China, its two most important markets, thanks to weaker-than-expected demand for EVs in the former and brutal competition from local rivals in the latter.

VW also weathered a bruising fight with worker's unions over restructuring plans last year and has vowed to cut 35,000 jobs by 2030.

The company now faces the prospect of its Chinese competitors selling their affordable EVs in its backyard, with the likes of BYD and Xpeng eyeing ambitious expansion plans in Europe.

Just as VW faces many of the same problems as other legacy automakers, Rivian's challenges have the same flavor as those of other fledgling EV firms.

The startup, known for its sporty electric trucks and SUVs, plans to release cheaper EVs in the coming years but is still losing nearly $40,000 on every vehicle it sells.

Rivian also faces the looming disruption of Trump ending federal support for EVs, and is battling a slowdown in electric vehicle sales growth which has seen several electric vehicle startups that went public around the same time file for bankruptcy in recent months.

The deal with VW gives Rivian a crucial financial lifeline as it scales up production.

For VW, it allows the German automaker to incorporate Rivian's electric vehicle and software know-how into its lineup of affordable EVs, starting with the ID.EVERY1, which will compete against the coming wave of affordable Chinese EVs packed with advanced technology in Europe.

Other European automakers such as Renault and Stellantis are also rolling out their own affordable electric vehicles — but there is no sign of the wave of cheap EVs reaching the US just yet.

While a production version of the ID.EVERY1 is set to launch in Europe in 2027, VW did not provide any details about a US launch.

That means the ID.EVERY1 is likely to join the growing number of affordable EVs that are available in Europe but not the US. With the prospect of tariffs on European cars and the end of government subsidies for EVs being floated by the Trump administration, that is unlikely to change anytime soon.

• Police are investigating after a 17-year-old boarded a plane with a shotgun in Australia.
• Passengers told local radio he was dressed like an airport worker.
• The teenager was detained by crew and passengers on the flight.

A 17-year-old with a loaded shotgun boarded a flight after breaching airport security, police in Australia said.

The incident occurred on Thursday at Avalon Airport, near Melbourne, which has flights operated by the Qantas-owned budget carrier Jetstar.

Victoria Police said the teenager was detained by crew and passengers on the flight. Officers also located two bags and a vehicle belonging to the suspect.

Images obtained by Australia's ABC News showed him wearing a high-vis jacket similar to airport ground crew, and being held down in the cabin.

The broadcaster reported that Superintendent Michael Reid said the teenager had acted alone and entered the airport through a hole in a security fence.

Reid said the teen then made his way to the plane but was overpowered by several passengers after boarding it.

Barry Clark, a passenger on the flight, told ABC Radio Melbourne he noticed the 17-year-old as he was being questioned by a flight attendant.

"He was dressed up as a worker and he got agitated and before we knew, it there was a gun — shotgun appeared — and I was worried about there being shots so all I could do was get the gun out of the way, threw it down the stairs … and then put him in a hold and throw him to the ground til the police come," Clark said.

Asked what was going through his mind when he tackled the young man, Clark said: "You don't think, you act."

Reid also told reporters: "No doubt this would have been a very terrifying incident for the passengers of that plane and Victoria Police really commend the bravery of the passengers who were able to overpower that male."

A Jetstar representative told Business Insider the airline was working with police and airport authorities to investigate the incident.

"The safety of our passengers and crew is our number one priority and we can confirm there were no reported injuries," they said.

"We know this would have been a very distressing situation and we are sincerely grateful to the customers who assisted our crew to safely manage the situation."

• A new survey suggests that Dubai's population growth is having a negative impact on expat salaries.
• As more expats compete for jobs, salaries are set to remain flat in 2025, Cooper Fitch found.
• But the recruitment agency said housing costs are up, which could shrink expats' disposable incomes.

As expats continue to relocate to Dubai, the cost of living is rising but salaries are expected to stagnate, according to a new survey by Dubai-based recruitment agency Cooper Fitch.

Cooper Fitch projects that salaries across the United Arab Emirates will flatline in 2025, with an average increase of 0%, despite expected GDP growth.

Its UAE Salary Guide 2025, based on a survey of business leaders from over 1,000 organizations, also notes that some market analysts warn the country's expanding expat population could eventually drive average salaries down.

Dubai is an expat hot spot

Foreigners have long been drawn to Dubai by tax-free incomes, a luxury lifestyle, and a warm climate.

Dubai's population has surged to about 3.85 million, with expats accounting for roughly 87%, according to government data.

This marks a population increase of about 475,000 people from March 2020.

The positive economic indicators, including inflows of foreign direct investment and rising GDP, may entice even more people to relocate to Dubai in the coming years.

However, Cooper Fitch said that when it comes to salary increases, the significant population growth is "balancing the economic gains."

Fiona Robson, the head of the Edinburgh Business School at Heriot-Watt University Dubai, told BI that the influx of expats is expanding the talent pool for job vacancies.

As such, she said that salary stagnation "could be due to less of a need to offer premium salaries when there is already a good set of candidates to select from."

Salaries flatline, while living costs soar

Dubai remains a magnet for high-income earners, said Washika Haak-Saheem, the dean of Dubai Business School at the University of Dubai, in an email to BI.

However, those who are less well-off may be increasingly feeling the pinch.

Haak-Saheem said that for middle-income professionals "who are important to Dubai's dynamic economic growth, ensuring sustained salary growth remains an area of focus."

Dubai is now the costliest city in the Middle East for expats, and 15th globally, according to Mercer's Cost of Living 2024 ranking.

Housing is a major factor.

In the 12 months leading up to December 2024, rents rose by an average of 16%, said CBRE's head of MENA research, Matthew Green, in an email to BI.

"This has been driven by a rapidly rising population, with new supply failing to keep pace with demand," he said. And rents are forecast to rise even further in the coming quarters, Green added.

"The disparity between escalating living costs and stagnant salaries poses financial challenges for many expatriates," Rizwan Tahir, professor of global management at the Rochester Institute of Technology Dubai, told BI.

The cost of a growing population

Flatlining salaries and rising rents may be the price of Dubai's expanding expat community. Even so, the city plans to keep growing.

According to its urban development roadmap, Dubai aims to increase its population by an additional 5.8 million by 2040.

Going forward, available salaries and rents could lead to a reduction in disposable income for some, but Trefor Murphy, CEO of Cooper Fitch, said that context is key when it comes to salaries in the UAE.

"They're already at that very high level and it's tax-free," he said, adding: "People get paid really well."

Do you have a story to share about life as an expat in the UAE? Contact this reporter at [email protected].

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