Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Rivian CEO eyes smaller electric vehicles for China, Europe

Stock MarketsNov 18, 2020 06:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Rivian introduces all-electric R1S SUV at LA Auto Show in Los Angeles, California

By Ben Klayman and Paul Lienert

DETROIT (Reuters) - Electric vehicle startup Rivian, which is backed by Amazon (O:AMZN) and Ford Motor Co (N:F), on Wednesday said it plans to follow up its first two products, a full-size pickup and SUV, with smaller models targeted at China and Europe where it may eventually build some vehicles.

While Rivian plans to begin selling the SUV in Europe in 2022 and China soon after, "what will really drive volume in those markets is the follow-on products" that are smaller and tailored for overseas customers, Rivian founder and Chief Executive R.J. Scaringe told Reuters.

The smaller models, which are expected to share key components with the pickup and SUV, will "fit some of those other markets really well, in particular China," Scaringe said.

"To really scale in those markets as we bring on follow-on products, having a production footprint outside the U.S. is going to be important," he said. "That's a ways off."

Scaringe added: "We wouldn't be serious about building a car company if we weren't thinking about China and Europe as important markets long term."

The company's first plant in Normal, Illinois, has begun pilot production ahead of next year's launch of three models - the R1T pickup and R1S SUV, which Scaringe described as "halo products" for Rivian, and a large electric delivery van for Amazon.

Speaking from a room overlooking the assembly line, Scaringe said the former Mitsubishi Motors (OTC:MMTOF) plant reflects an unusual degree of vertical integration, with room for building motors and battery packs for the vehicles and for further expansion.

The Amazon delivery van is built on a version of the same platform, or basic underpinnings, used by the R1T and R1S.

Rivian has said deliveries of the pickup would start in June 2021, while those of the SUV would begin in August. Launch editions of the vehicles are priced at $75,000 and $77,500, respectively, with a 300-mile (480 km) driving range for both.

The electric pickup market will soon be crowded as Ford, General Motors Co (N:GM) and Tesla Inc (O:TSLA), as well as several other startups, are developing similar models. Numerous automakers also are rolling out electric SUVs.

In July, Rivian, founded in 2009, boosted its war chest with a $2.5-billion investment round led by T. Rowe Price, raising total investment in the startup to $6 billion. Investors include Soros Fund Management, Fidelity and BlackRock (N:BLK), as well as Saudi auto distributor Abdul Latif Jameel Co (ALJ).

Amazon, which has relationships and deals across the auto industry, led a $700 million investment round in Rivian last year.

The e-commerce company also ordered 100,000 electric vans from Rivian. The first Amazon vehicles go into production in Normal in late 2021, with all deliveries to be completed by 2024.

Scaringe said Rivian has begun setting up service centers and will deploy mobile units to handle maintenance and repair work on Amazon's vans, as well as Rivian vehicles for retail customers.

Rivian CEO eyes smaller electric vehicles for China, Europe
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email