Rivian Automotive has announced its production totals for the first quarter of 2017. The company is on track to reach its annual production target of 25,000 vehicles. It also announced it will cut some jobs and raise US$1.3 billion in a new round of funding led by Ford. The company’s production totals aren’t as impressive as initial expectations, but it’s still a big deal.
Rivian Automotive has produced 14,317 vehicles
Rivian Automotive, Inc., a company that builds and delivers vehicles for Amazon, has announced its production numbers for the third quarter ended June 30. The company’s Normal, Illinois, manufacturing facility produced 4,401 vehicles during the quarter and delivered another 4,467 vehicles to customers. These figures are in line with expectations and the company is on track to meet its guidance.
Rivian Automotive has confirmed its production targets for 2013 by producing 14,317 vehicles through the third quarter. The company is now on track to reach its goal of producing 25,000 vehicles annually by 2022.
It is on track to meet its 25,000 annual production target
Rivian Automotive is on track to meet the 25,000 annual production target it set for itself in 2017. The company is still ramping up production of its R1T and R1S vehicles. The company is aiming to run the factory around the clock during the second half of 2022. Although there have been a few bumps in the road, the automaker is still on track to meet its goal. In fiscal Q2 alone, the company built 4,401 R1T trucks and R1S SUVs. Those numbers are higher than the company’s previous estimates.
Rivian Automotive has been struggling to increase production due to supply chain challenges. In March, the company lowered its production target for 2022 by halving the number of vehicles it expected to make that year. Rivian’s Normal, IL factory produces the R1S sport utility vehicle, the R1T pickup truck and an Amazon delivery van. The company’s current production capacity is 150,000 vehicles, but the company plans to double that number to 200,000 by 2023.
It is letting go of some workers
Rivian Automotive is letting go of a number of workers in an effort to reduce costs and simplify its product plans. The company said it is preparing to lay off up to 6% of its workers, but it will retain manufacturing jobs. CEO RJ Scaringe has sent an internal message to employees asking them to be thoughtful in their decision.
The layoffs are due to inflationary pressures and a rapidly changing economy. The company will focus on the nonmanufacturing roles, as well as teams with redundant functions. The layoffs will not affect its normal operations in Normal, Illinois.
It is raising US$1.3 billion in a round led by Ford
Rivian Automotive has announced that it has raised US$1.3 billion in a new round of financing, led by Ford. Ford is one of the largest shareholders in the automaker, owning a 9.6 percent stake in Rivian. The automaker, which is also the pride of Ford CEO Jim Farley, recently announced plans to sell an electric version of its top-selling European delivery van within a year. Ford and Rivian also have a shared interest in delivering goods and services to consumers, which could make it a perfect match for collaboration.
Ford’s investment in Rivian is part of a larger strategy that Ford has for the company. Rivian has already earmarked the cash to fund several other high-profile projects, including the construction of a $5 billion factory near Atlanta. Rivian executives say the cash on hand gives them the runway they need to start producing a mid-priced car by 2025.
It is planning to open a second plant near Atlanta in 2025
Rivian Automotive plans to build a $5 billion plant east of Atlanta that will produce 400,000 vehicles per year. It plans to hire 7,500 people at its new facility. Rivian already has a plant in Illinois and plans to expand it to produce more than 200,000 vehicles per year. The company expects to begin production there in 2024 and eventually employ 7,500 people.
Rivian has already opened one factory in central Illinois and has been looking for locations to expand production. The company has also scouted properties nationwide in hopes of landing another factory. Texas was reported as one of the top contenders to attract Rivian. It’s worth noting that Fort Worth, Texas, offered $440 million in incentives to entice the company to build a plant there. The company also considered Georgia, Michigan, and Arizona for the new plant.
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