Rivian is reportedly relocating parts of its manufacturing engineering team to Illinois in an effort to accelerate production, according to an anonymous source cited in a recent report by The Wall Street Journal. The move is expected to be announced soon, and will require some manufacturing engineering employees to relocate to central Illinois or the company’s headquarters in Irvine, California.
While Rivian has declined to confirm the relocation, a spokesperson told Reuters, “In terms of ramping production, it’s helpful to have the manufacturing and engineering teams closer to our facilities in Normal as well as our headquarters in Irvine.” The company produces its R1T electric pickup trucks and R1S SUVs at its factory in Normal, Illinois, but has struggled to meet production targets due to ongoing supply chain issues.
Rivian’s financial situation has also been concerning for investors, as the company has been losing money on every vehicle it produces. Despite narrowly missing its 2022 production target of 25,000 units, the company has forecasted 2023 production below analysts’ expectations.
As interest rates rise and fears of a looming recession continue to unsettle the EV market, Rivian’s move to relocate its manufacturing engineering team is seen as a necessary step to help the company overcome its production challenges and emerge as a leader in the EV space. As one anonymous source noted, “Rivian needs to find a way to ramp up production quickly and efficiently in order to stay competitive, and having its manufacturing and engineering teams closer to its facilities is a smart move.”
