As Rivian ramps up production of its new R2, the company plans to introduce a second shift at its Normal, Illinois manufacturing facility by the end of September. Production is expected to expand further once the company’s second manufacturing facility in Georgia comes online.
Some are calling the R2 Rivian’s “breakout vehicle”—the model that will lift it out of the Valley of Death and into the sunshine of profitability. The company is following what conventional wisdom regards as the best strategy for an auto startup: start with high-end, low-volume models, then use the lessons learned to produce smaller, more affordable offerings. (Rivian has added a step to this process, sidestepping the fashion-driven passenger car market to produce a commercial vehicle in high volume for Amazon.)
Deliveries of the R2 began in June with the top-of-the-line Performance trim, which starts at $59,485. This model offers dual-motor 656 hp all-wheel drive, an EPA-estimated 330 miles of range and a NACS charging port. More affordable trims are scheduled to arrive over the coming months, culminating in the Standard Rear-Wheel Drive, an entry-level model that’s scheduled to launch in summer 2027 at a starting price of $46,495. (Read John Voelcker’s hands-on review of the R2 in the next print issue of Charged.)
Ramping up production of a new model is a complex dance, particularly for a young company that doesn’t have spare capital lying around.
Rivian launched production of the R2 on a single shift, in order to get the supply chain humming before hiring more production line workers. CEO RJ Scaringe told investors that the company is working with hundreds of suppliers to ensure they can increase their own production to support a smooth R2 ramp-up.
As the Rivian-watchers at RivianTrackr explain, supplier coordination is an important part of a ramp-up strategy, because the entire production line can only move at the speed of the slowest supplier. Rivian’s supply chain team will be working closely on-site with suppliers to help manage the ramp-up over the next couple of years.
Rivian has raised its full-year delivery target to between 65,000 and 70,000 vehicles, including the R1 and R2 models and the commercial vans. The Normal plant is designed to produce 215,000 units per year when operating at full three-shift capacity, and up to 155,000 of those units are expected to be R2s. A third shift is planned for 2027, and production at the new Georgia plant will begin some time after that.
Scaringe said a “significant number” of R2 buyers are first-time EV owners. “The US automotive marketplace is starved for high-quality EV choice, and I believe R2 is an attractively priced option for everyday adventures that will resonate with a broad set of consumers.”
Sources: RivianTrackr, EVinfo.net
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