Rivian announced plans to ramp up production at its Normal, Illinois plant to manufacture up to 155,000 R2 SUVs annually, as part of its strategy to expand its sales and market reach.
During its first-quarter earnings report, Rivian revealed that upgrades to its Illinois factory would increase total production capacity to 215,000 units. This includes not only the upcoming R2 SUV but also its current lineup, which comprises the R1T pickup truck, the R1S SUV, and a commercial delivery van used by Amazon among other commercial customers.
The R2 SUV, unveiled in March, is seen as pivotal to Rivian’s future success. Priced at around $45,000, the crossover SUV targets a broad segment of the American car market, directly competing with Tesla’s popular Model Y. Rivian expects the R2 to attract significantly more buyers than its relatively expensive R1 series, which is crucial for its long-term financial viability.
Rivian produced approximately 57,000 vehicles last year and plans to maintain a similar level this year. However, meaningful production improvements are not expected until R2 production is fully operational. The company anticipates a surge in sales, primarily driven by the R2.
According to Rivian’s CFO Claire McDonough, the company will have flexibility in achieving its 215,000-unit production target. The plant will be capable of producing a maximum of 85,000 R1 vehicles, up to 65,000 commercial vans, and the aforementioned 155,000 R2 SUVs. This setup allows Rivian to adjust manufacturing capacity across different production lines to meet demand.
