Rivian says it’s still on track to produce 25,000 vehicles despite production woes

More so than most automakers, Rivian had a tough 2022. Earlier in the year, the company, blaming inflation and component shortages, raised the base price of its quad-motor R1T pickup by a whopping $12,000. And while it quickly went back down, the decision led to a shareholder lawsuit.

Despite those early problems, Rivian says it’s still on track to produce 25,000 vehicles in 2022. The company reiterated the prediction in a statement it shared on Wednesday. Rivian said it built 4,401 R1S SUVs and delivered 4,467 vehicles at its Normal, Illinois plant in the fiscal second quarter.

“The supply chain and production are ramping up,” said RJ Scaringe, CEO of Rivian after the announcement. “We just announced production of 4,401 vehicles for the second quarter, bringing our cumulative total since production started to 7,969 – staying on track to meet our year-end targets.”

While 4,401 vehicles is a modest number, it’s an improvement for Rivian. The startup started in the first three months of the year. Equally notable is that the company has managed to scale production while facing many of the same issues that have slowed its competition. On Saturday, Tesla announced its first quarter-on-quarter production decline in two years. In the second quarter, the company saw production volumes fall 15 percent due to ongoing parts shortages and multiple COVID-19 shutdowns at its critical Shanghai gigafactory.

Increasing production capacity will be vital to Rivian’s survival. In addition to a pre-order backlog of around 71,000 vehicles, the company has an order to fill for a minority. Late last year, Rivian announced it would build a second factory in New York, but that facility won’t be operational until sometime in 2024. Until then, the startup is dependent on its only factory in Normal, which will eventually produce 200,000 vehicles annually.

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https://www.engadget.com/rivian-on-track-to-produce-25000-vehicles-in-2022-233943952.html?src=rss Rivian says it’s still on track to produce 25,000 vehicles despite production woes

Russell Falcon

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