Monday, July 22, 2024
NewsWill Rivian follow other OEMs in this price cut war?

Will Rivian follow other OEMs in this price cut war?

  • Rivian will not follow the other brands in this price cut war.

  • We can expect a few new pickup models shortly.

  • Rivian has improved the efficiency of its production plant.


 

There is more and more competition in the electric vehicle segment, particularly the one involving pickup trucks, as the category will soon welcome new players, including the much-anticipated Tesla Cybertruck, but also General Motors offerings such as the Chevrolet Silverado EV and GMC Sierra EV. And expect more entrants shortly after.

Rivian R1T and R1S | Photo: Rivian

These new products are hardly reassuring for a company like Rivian, which still must deal with the effects of the supply chain, although these have been partly resolved, if we are to believe what a brand representative confided to Automotive News.

The small American automaker is set to publish its second-quarter results tomorrow. Expect more positive announcements than in the first quarter, when delivery numbers were lower. This increase in sales means that production at the brand’s plant is ramping up, but Rivian must also consider this context of price cuts.

Indeed, Ford recently lowered the price of the base version of its F-150 Lightning pickup, and Tesla’s history of price cuts is a hint of what’s in store for other electric pickup manufacturers. A price war is clearly on the cards, especially with demand for electric vehicles on the decline, but also with the range of models on offer continuing to expand.

Rivian R1S | Photo: Rivian

Lately, we’ve seen further reductions in EV prices, especially with soaring interest rates holding back some consumers in their purchasing process.

Rivian must also continue to invest in its future, such as the construction of a second plant to graft new, more affordable, and possibly more expensive models onto its pair of utility vehicles consisting of the R1T pickup and R1S crossover. And let’s not forget the

Finally, in an interview with AN, the automaker also stated that improvements to its production plant would enable it to reach its production target of 50,000 units by 2023.

At this time, Rivian indicated that it would not follow the other brands in this price cut war.

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