Rivian, the American electric vehicle (EV) startup, is set to introduce its first model in the more affordable R2 range in early 2024, as confirmed by the company’s Chief Financial Officer (CFO), Claire McDonough. McDonough shared this information during a recent discussion with Emmanuel Rosner at Deutsche Bank’s Global Auto Industry Conference Call.
McDonough expressed her excitement about the upcoming R2 lineup, mentioning that she had seen the clay model, which was teased during a Q&A session with Rivian CEO RJ Scaringe. She highlighted the team’s enthusiasm for the distinctive features of these products.
The initial R2-based offering from Rivian is expected to be a mid-size SUV crossover. It is projected to have a starting price of approximately $40,000, with a maximum retail price of $60,000. This places the vehicle below Rivian’s flagship models—the R1T pickup, starting at $73,000, and the R1S SUV, which has an MSRP of $78,000.
The upcoming R2S SUV, although not confirmed by name, is likely to follow the nomenclature of the R1 lineup. It is expected to share a similar size and price range with the Ford Bronco, presenting consumers with an attractive option in the mid-size SUV segment.
Rivian anticipates commencing production of the R2 SUV two years after its unveiling, meaning it could begin in 2026. By that time, the company aims to boost production of its R1-based vehicles from 65,000 units per year to 85,000 units. However, the annual production of Rivian’s Electric Delivery Van (EDV), exclusively for Amazon, is set to decrease from 85,000 units to 65,000 units.
The existing assembly facility in Normal, Illinois, will maintain a total capacity of 150,000 units per year in 2024. However, Rivian has plans for a second factory in Georgia, which will handle the production of R2 models. This expansion will enable the company to meet growing demand and cater to a wider customer base.
During the conference call, McDonough hinted at the possibility of the R2 platform having a global reach rather than being limited to North America, similar to the R1-based vehicles. She alluded to the progress made by Rivian in reducing material costs and indicated that negotiations for the R2 platform would start from a more advantageous position, considering its potential impact not only in North America but also worldwide.
As Rivian prepares to unveil its first model in the R2 range, automotive enthusiasts eagerly anticipate the company’s continued innovation and expansion into more affordable segments. The forthcoming R2S SUV aims to combine affordability, size, and advanced electric technology, placing Rivian in a competitive position within the global EV market.
