Rivian plans to shut down production at its factory in Normal, Illinois, between April 5 to 30, 2024. Rivian plans to retool its Normal Factory during the shutdown.
Rivian’s Normal Factory shutdown is well-timed. The company’s retooling plan is expected to significantly reduce the costs of producing each vehicle while increasing Rivian’s production rate.
Rivian expects 2024’s production to be flat year over year at 57,000 units. Last year, Rivian delivered 57,232 R1 electric vehicles.
“The changes we plan to make in our R1 manufacturing line during the mid-year shutdown [sic] are designed to deliver greater plant efficiency, with [the] production rate expected to improve by approximately 30%,” Rivian noted in its Q4 and Full Year 2023 Update Letter.
The electric vehicle (EV) startup’s main goals for 2024 are to improve its cost efficiency and enhance customer experience. The company has already made strides in the latter as R1 owners recently received access to Tesla Superchargers with the NACS connector. Rivian’s 2024 goals will hopefully help it maintain its customer base and prepare for growth in the coming years.
According to the Financial Times, RJ Scaringe sent an email last month to employees discussing Rivian’s current challenges and how to combat them. The email mentioned that the company faced “a challenging macroeconomic environment — including historically high interest rates and geopolitical uncertainty — and we need to make changes now to ensure our promising future.”
Rivian unveiled the R2 and R3 vehicles earlier this month, revealing its future path. The company’s current moves will determine whether the R2 and R3 will reach production and succeed in the United States’ growing EV market.
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