Rivian says lower-cost second generation EVs to help in push for profitability
What impact will Volkswagen's investment have on Rivian's financials?
Volkswagen's $1 billion investment in Rivian, as part of a joint venture for EV architecture and software, is expected to boost Rivian's financials. This investment, along with potential additional investments of up to $4 billion, will provide the struggling EV maker with a financial lifeline, allowing it to continue its production and development efforts. The partnership also allows Rivian to access Volkswagen's global reach and technology, potentially increasing its market share and profitability.
What is Rivian's strategy for reducing the cost of its second-generation EVs?
Rivian's strategy for reducing the cost of its second-generation EVs involves overhauling its manufacturing plant, simplifying processes, removing equipment, and eliminating over 500 parts from the vehicles. This has resulted in a 20% reduction in material costs for the R1 electric SUVs and pickups, with further cost reductions expected as improvements continue.
How much did Rivian reduce material costs for its electric vans last year?
Rivian reduced material costs for its electric vans by 35% last year through a similar process of redesigning components for cost savings3. This was achieved by simplifying processes, removing equipment at the facility, and eliminating over 500 parts from the vehicles to make them cheaper to build.