Rivian has been under pressure to meet customers' reservations for its R1T and R1S electric vehicles
. In an email sent to its reservation holders, the American EV startup confirmed that it's reshuffling its production strategy to hasten production. That means some customers will receive their orders sooner than they expected, but it only extends the waiting time for others. The process reorganization comes a few months after Rivian boosted its R1T EV pickup truck production by 300% towards the end of 2021. While some customers will be disappointed with the move, the switch to another production approach is designed to improve efficiency.
Read on to learn more about the Rivian reshuffling, and the most efficient way to save money on car insurance
. Why is Rivian producing certain models first?
Revamping the roll-out rate of any production car is challenging for a long-standing automaker. Tesla already experienced a production "nightmare" with the Model 3, yet it's been in the EV industry for longer than any Rivian. But despite the hurdles of ramping up car production, an email sent to reservation holders on April 26th indicated that Rivian is indeed reshuffling its build orders.
CNET
highlighted that the changes at Rivian mean that the company can prioritize and group production runs to boost efficiency, which would imply that the automaker could meet its deliveries to customers on time. The company is expected to roll out 25,000 EVs this year, and the new production approach brings it closer to that goal. Here's the strategy: Rivian is prioritizing models with Black Mountain and Forest Edge color blends, as they are easier to produce than the Ocean Coast model with a light wood trim. Next on the production line will be EVs with the same color and wheel design. It means that cars with Adventure Package and Launch Edition models will share the same production line, which wasn't the case before.
MORE: Can the U.S. Reach Its 2030 EV Sales Goal? KPMG Survey Says Yes
How the new process affects waiting time for Rivian customers
While the reshuffled build order enhances Rivian's production efficiency, there are two sides to the coin. Some customers with order reservations will have to wait a little longer for their new Rivian model. That isn't very pleasant, but for others, their expected waiting time just got shorter, which is an unprecedented relief.
Additionally, the new production activities allow Rivian to give customers with a build date in 2022 a chance to tweak their preferred configurations, which could lessen their delays. If other customers remain adamant about retaining their previous configurations, there's no problem, except they'll have to be patient a little longer.
The New York Times
confirmed that Rivian said that it could meet half of the 25,000 orders scheduled for this year if it were not for the supply chain disruption that has limited production. After going public in November and raising $13.5 billion, the company will build another production facility in Georgia besides the Normal, IL-based factory in a bid to raise production margins. The restructured production approach is a smart move by Rivian
Rivian's reservation list comprises orders expected to be delivered in 2023 and beyond. It's still unknown how the changes will affect those orders. No concrete plan seems apparent at the moment, as Rivian has only stated that 2023 reservation holders to "sit tight and continue being patient" for now.
There's no doubt that the changes at Rivian will make a number of customers unhappy, and that's reasonable. Nonetheless, it's the best move for the company to reduce the backlog in its order reservation list. It also demonstrates Rivian's high regard for customers by managing their expectations with clear, timely communication.
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