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

Moreso than most automakers, Rivian has had a tough 2022. At the start of the year, the company, blaming inflation and component shortages, raised the base price of its quad-motor R1T pickup truck by a whopping $12,000. And while it went on to quickly backtrack, the decision led to a shareholder lawsuit. 

Despite those early woes, 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 R1T trucks, R1S SUVs and Amazon delivery vans at its factory in Normal, Illinois and delivered 4,467 vehicles during fiscal Q2.

“Supply chain and production are ramping,” Rivian CEO RJ Scaringe tweeted after the announcement. “We just announced production of 4,401 vehicles for Q2 bringing our cumulative total since start of production to 7,969 — keeping us on track to reach our year-end goals.”

While 4,401 vehicles is a modest tally, it is an improvement for Rivian. In the first three months of the year, the startup built 2,553 cars. Just as noteworthy is that the company managed to scale production while facing many of the same issues that have slowed its competition. On Saturday, Tesla announced its first quarter-over-quarter production decline in two years. In Q2, the company saw a 15 percent drop in manufacturing volume due to ongoing parts shortages and multiple COVID-19 shutdowns at its critical Shanghai Gigafactory.

Increasing production capacity will be critical to Rivian’s survival. In addition to an approximately 71,000 vehicle preorder backlog, the company has a 100,000 van order it needs to fulfill for minority owner Amazon. Late last year, Rivian announced it would build a second factory in Georgia, but that facility won’t be operational until sometime 2024. Until then, the startup is dependent on its single factory in Normal, which it says will eventually produce 200,000 vehicles annually.

Original source: https://www.engadget.com/rivian-on-track-to-produce-25000-vehicles-in-2022-233943952.html?src=rss