Rivian Automotive is relocating parts of its manufacturing engineering team to Illinois to accelerate its production process, it has been reported. The move is expected to be announced soon, and will see manufacturing engineers asked to relocate to central Illinois or the company’s headquarters in Irvine, California.
Having the manufacturing and engineering teams closer to their facilities in Normal, Illinois, would be helpful in ramping up production, said a Rivian spokesperson. However, they declined to confirm whether the company was relocating teams.
Rivian produces R1T electric pickup trucks and R1S SUVs at its factory in Normal, Illinois. In February, the company forecast 2023 production below analysts’ expectations due to ongoing supply chain challenges.
Rivian has been losing money on every vehicle it builds, and narrowly missed its annual production target of 25,000 units last year.
Investors have been worried about weakening demand for electric vehicles, with concerns about rising interest rates and the potential for a recession. However, Rivian remains optimistic about its future prospects, and has received substantial investment from companies like Amazon, Ford, and T. Rowe Price.
Relocating parts of its manufacturing engineering team is just one step Rivian is taking to address production challenges and meet increasing demand for its electric vehicles. The company has also announced plans to build a second factory in Georgia, and is reportedly in talks with the UK government about potentially building a factory there.
Rivian’s success will be closely watched by industry observers, as it is one of several electric vehicle companies competing for market share in the rapidly growing EV sector. The company’s ability to ramp up production and overcome supply chain challenges will be key to its long-term success.