Since their debut in North America back in 2018, Rivian’s highly anticipated all-electric pickup truck, the R1T, and its SUV counterpart, the R1S, have left European customers eagerly awaiting their arrival on the Old Continent. Some American R1T owners who relocated to Europe went to great lengths to ship their electric trucks overseas, but this option is not accessible to everyone due to the initial purchase requirement in the United States.
However, during a recent interview with Bloomberg TV, RJ Scaringe, the founder and CEO of Rivian, revealed that the company has now established an operational base in Europe, complete with servicing and parts procurement. He also hinted at the base’s future expansion to accommodate Rivian’s upcoming ventures in Europe.
This news coincides with the impending arrival of the first batch of Amazon Electric Delivery Vans (EDVs) in Europe, signifying Rivian’s official presence on the continent. Interestingly, Scaringe did not explicitly mention the R1T and R1S in relation to the company’s European expansion plans. Instead, he revealed that the forthcoming R2-based vehicles, which will be smaller and more affordable, will lead the charge in European markets.
Rivian CEO and founder RJ Scaringe says the company's supply chain is "healthy" and keeping up with production https://t.co/vBgkAWdfHU pic.twitter.com/6NMGhCyeHV
— Bloomberg TV (@BloombergTV) July 5, 2023
Scaringe emphasized the importance of the EDVs, stating, “It’s important to get those vehicles there [the EDVs]. Amazon has a lot of business in Europe, but it also represents not just turning on production and vehicles that get shipped overseas, but all the supporting infrastructure.” He further explained that the EDV program allows for the establishment of parts distribution capabilities and service capabilities, making it an ideal entry point for Rivian to introduce its products to the European market.
When questioned about Rivian’s conservative approach to updating its production and delivery guidance figures, despite a record-breaking second quarter, Scaringe expressed his preference for underpromising and overdelivering. He explained that this strategy accounts for potential risk factors that could disrupt production.
Scaringe stated, “One of the other things we’ve gone through is just being, you know, very much thoughtful in not wanting to overpromise. We want to make sure that we overdeliver on our numbers, overdeliver on our targets, and knowing all the unknowns that still exist in the system.”
Regarding production and delivery figures for passenger and commercial vehicles, Rivian’s CEO revealed that their focus will primarily be on the R1S, R1T, and future R2-based models. He highlighted that the Amazon EDV program will contribute approximately 20 percent of the company’s manufacturing efforts.
Scaringe elaborated, “If you think about over the full year, we’ve guided to roughly 20 percent of our production [for] the commercial vans. You know, as we think about going forward, the consumer side of the business will grow disproportionately relative to the commercial side, especially as we bring in our next-generation products, with the R2 and the R2 platform representing a significant step-up in volume at a much lower price point.”
In a recent announcement by Rivian’s Chief Financial Officer (CFO) Claire McDonough, it was revealed that the first R2-based model will be a mid-size crossover SUV, expected to have a starting price of around $40,000 and a maximum retail price of $60,000. This places it below the flagship R1T pickup, starting at $73,000, and the R1S SUV with an MSRP of $78,000.
In the second quarter of 2022, Rivian witnessed remarkable growth, producing 13,992 battery electric vehicles (BEVs) at its plant in Normal, Illinoisāan impressive 218 percent increase compared to the previous year. Additionally, the company delivered 12,640 units during the same period, marking a substantial 183 percent year-over-year increase.
