Rivian

Delayed Rivian On Track to Deliver Electric Trucks and SUVs

August 1, 2020 by admin Leave a Comment

Electric vehicle manufacturer Rivian has yet to roll out a production-ready model, but the company remains on track to produce a truck and a utility vehicle. The Plymouth, Michigan-based automaker with a manufacturing plant in Normal, Illinois, was expected to introduce its first model by the end of this calendar year. Instead, delays related to the COVID-19 pandemic have pushed that timeframe to next summer with the arrival of its R1T electric truck followed two months later by its R1S electric SUV.

Billions Raised; Fleet Orders In

That Rivian is still moving forward with its plans demonstrates its resiliency as well as its strong financial backing. Founded in 2009, the company operated mostly behind the scenes until recently when it revealed prototypes of its upcoming vehicles. Further, Rivian has raised more than $5 billion in capital investments from companies such as Amazon, the Ford Motor Company, Cox Automotive, T. Rowe Price, and BlackRock. It remains a privately-held enterprise although it does count outsiders such as a Ford executive as a board member.

Amazon has ordered more than 100,000 vans, a third model apparently designed with this Internet delivery company in mind. Also, the Ford Motor Company is developing an electric truck based on the skateboard chassis underpinning Rivian vehicles. However, a second model, a Lincoln SUV, was canceled because of the pandemic.

Incidentally, the flexible Rivian platform includes electric motors, controls, batteries, and a suspension system. Likely, it will underpin other models for Rivian as well as for varying manufacturers who develop their own shell and interior. This means manufacturers will enjoy a vehicle with four independent electric motors sending up to 200 horsepower to each wheel. The company claims the platform’s torque management system allows for everything from high-speed cornering to low-speed rock crawling.

Poached Employees; Ordering Details

Rivian hasn’t been without controversy as Tesla alleges the company has poached employees who brought trade secrets with them. Rivian has 2,300 employees and Tesla claims 178 once worked for them. Moreover, the company identified four Tesla-turned-Rivian employees for taking confidential documents with them. Tesla filed suit against Rivian; the case is pending.

Customers may “pre-order” a Rivian truck or SUV by supplying the company with a $1,000 deposit. The deposit automatically places the customer on a waiting list, but it doesn’t obligate them to follow through on their purchase decision. Indeed, the deposit is fully refundable. That’s a typical practice for these kinds of ground-breaking models from upstart manufacturers.

Profile: RJ Scaringe

Rivian is headed by RJ Scaringe, a 37-year-old engineer from Florida. Scaringe has a doctorate in mechanical engineering from MIT’s Sloan Automotive Lab.

Since its inception, the company now known as Rivian has undergone several changes, including its name and mission. Once called Avera Motors, the company changed its name following a lawsuit from Hyundai, which claimed “Avera” sounded too much like “Azera,” the name of its large sedan. The new name pays homage to the Indian River in Brevard County, Florida, where Avera was located.

Its mission has changed too as the company originally sought to build a small commuter car similar in scope to the Toyota Prius. Its new plans were originally kept under wrap for several years before its skateboard architecture emerged. What we see coming is based entirely on the new vision.

As of this writing, Rivian has more than 2,300 people on its payroll in locations such as Canada, the United Kingdom, California, Michigan, and Illinois. Eventually, the company will begin hiring workers for its Normal facility, which it acquired from Mitsubishi Motors in 2018. State and local incentives to the tune of $249 million made that acquisition possible.

See Also — About the 2021 Lordstown Endurance

Logo copyright Rivian. All rights by the manufacturer reserved.

Coronavirus: An Industry Under Siege

May 5, 2020 by admin 3 Comments

Car manufacturers are finding different ways to support Americans during the pandemic. Here, a technician administers a COVID-19 test for a passenger at a drive-thru testing center. This particular center is the Children’s Hospital in Washington, DC. Hyundai supplied $4 million in grants through its Hyundai Hope On Wheels program to help underwrite testing (photo copyright Hyundai Motors).

Two months in and the 2020 Covid-19 pandemic shows little signs of ebbing. Sure, we’re seeing the number of new cases fall in many of the earlier hotspots, but in other areas of the country as well as in the world, the scourge seems persistent and ever-expanding.

Trillions of dollars of commerce have disappeared, with the federal government countering with trillions more in financial relief to assist small businesses and taxpayers. In the middle of it all is big business, including the automakers who depend on a steady stream of customers to keep their enterprises afloat.

Deep Losses Abound

To the surprise of no one, the U.S. auto industry’s sales have plunged, with some manufacturers, such as Honda, reporting losses above 50 percent. Manufacturing plants the world over have shut or are operating at reduced capacity. Also, the supply network is on hold, while consumers are more concerned about putting food on their tables, obtaining unemployment assistance, and holding off landlords, mortgage companies, and utility companies in an effort to stay afloat.

Yet, in these distressing times there remains a glimmer of hope. Americans are practicing physical distancing, virus testing and tracing continues to expand, and businesses are figuring out ways to reach consumers going forward.

Early on, manufacturers set out to console consumers, including those who were already financing or leasing their vehicles. Auto Trends received copies of various alerts, informing owners of options available, including deferred payments. The last thing anyone wants to see is a massive repossessing of late-model cars and the financial carnage that would cause.

Special Financing and Cash Back Deals

Besides reaching out to current owners, the automakers quickly updated their financing and leasing schemes to reach new-vehicle shoppers. Fiat Chrysler led the charge, rolling out 0-percent financing for up to 84 months, an uncommonly long timeframe. Besides its novel financing approach, the cashback deals are also better. Our internal survey shows savings of $7,300 to more than $10,000 on the Ram pickup trucks alone.

Other manufacturers joined in, delivering a variety of offers. For example, Toyota offers 0-percent financing for 60 months on three models: its midsize Camry sedan, compact RAV4 crossover, and Tacoma pickup truck. Hyundai rolled out 0-percent financing for 84 months on its compact Elantra sedan and compact Tucson crossover. Moreover, well-qualified Hyundai buyers enjoy a 120-day deferment on their first payment.

Canceled: Electrified Lincoln SUV

Beyond consumer assistance, the manufacturers have responded in various ways by delaying the introduction of new models or scuttling a planned vehicle completely. For an example of the latter, the Ford Motor Company canceled the planned all-electric SUV for Lincoln. The company cited the coronavirus crisis as the reason for canceling the SUV. Ford will, however, continue with its plan to release a Ford-brand pickup truck based on Rivian’s platform.

Manufacturing plants across America endured weeks of shut down, beginning in March. By early May, several plants in the southern U.S. resumed operation, including facilities owned by BMW, Hyundai, and Kia. All three follow Volkswagen, which restarted production at its massive Chattanooga plant at the end of April.

None are operating anywhere near full capacity as manufacturers maintain distancing, while also testing the veracity of their fragile supply chains.

Looking Ahead

The current downturn easily rivals the losses experienced during the Great Recession of 2008-2009. But the unemployment numbers today are far higher, with the rate spiking to an estimated 16.1-percent when the figures become known on Friday. As the states relax their various shutdown edicts, we expect that number to start to drop. Still, it could be many months if not longer before unemployment returns to an acceptable level.

If you’re in the market for a new vehicle, there are deals to be had. This writer exchanged his 2017 RAV4 for a 2020 Corolla, in April as the lease on the crossover came due. Opting for another lease, we lowered our monthly payments by selecting a lower-cost car and took advantage of incentives to save more money. Likewise, savvy consumers able to swing a new vehicle purchase should also garner an outstanding deal.

But there is one problem on the horizon: dealer stock is falling and, in many cases, won’t see replenishment until manufacturing resumes. Therefore, look for spot shortages until then, with pickup truck stock shrinking the most.

Up Next: Ford-Volkswagen Tie-up?

October 31, 2019 by admin 4 Comments

What a week it has been. More like a half-week, actually.

For it was within that abbreviated timeframe we officially heard that Fiat Chrysler and the PSA Groupe (Peugeot and Citroën) were talking merger. The news spilled out late Monday and by Wednesday the two automakers came to terms. Today, news of the planned merger was announced, setting in place what will become a near $50 billion entity, which currently produces 8.7 passenger vehicles annually.

Merger talk doesn’t take place in a vacuum. Indeed, soon after the FCA broke off talks with Renault to merge in June, rumors of PSA’s interest in FCA came out. All we’ve heard is what was reported this week. But talks have been going on for some time, carried under the cloak of secrecy.

We shouldn’t be surprised that the two automakers are connecting as the entire industry is ripe of consolidation. With the deal nearly certain to pass, it likely will trigger further consolidation with perhaps Ford and Volkswagen following. Yes, these two automakers seem like prime candidates for an alliance or outright merger. There are several reasons why, which we’ll explore here.

Volkswagen and Ford: The Next Tie-up?

1. The two companies forged a global alliance.

In January 2019, Ford and Volkswagen announced that the two companies were forging a global alliance, but without cross-ownership. Pickup trucks and commercial vans were the first vehicles mentioned where collaboration will take place.

2. An EV/AV alliance follows.

In July, Ford and Volkswagen announced that the two automakers would begin sharing electric vehicle (EV) and autonomous vehicle (AV) technology. VW is investing in Argo AI, which is Ford’s self-driving technology, while Ford will build at least one vehicle based on Volkswagen’s Modular Electric Toolkit (MEB) architecture for sale in Europe.

3. Ford cuts back on cars.

The Ford Motor Company still produces cars, but the U.S. market will soon offer only the Mustang, pickup trucks, and lots of utility vehicles. With a VW tie-up, Ford might find it affordable and sensible to sell small cars again in the U.S., especially as the merged entity shaves costs. In any case, if the market suddenly shifts to cars again, Ford will have the platforms in place to build what’s needed.

4. The Rivian factor.

We already know that Ford owns a slice of Rivian, the upstart electric vehicle maker. Rivian will begin producing an SUV and pickup truck by the end of 2020. Ford will have access to Rivian’s skateboard electric vehicle architecture, which is certain to produce at least one model for the Ford brand. Volkswagen wants a pickup too and might utilize Rivian besides tapping the Ford Ranger for its own purpose.

5. Big is better.

When it comes to building passenger vehicles, the bigger you are, the better. Or at least that is the thinking in this industry. Yes, “economies of scale” and “synergies” are realized through smart collaboration. But there is another factor, bragging rights, which the new company led by Volkswagen would claim as sales would top an estimated 14 million units annually, putting the new automaker well in front of the pack.

What About GM?

With FCA and PSA hooking up and Ford and Volkswagen presenting a strong argument for consolidation, what about GM? At one time we might have seen GM go it alone or acquire another automaker, but that’s not going to happen.

Fresh on the heels of a costly labor agreement with the UAW, GM is ripe for the picking. We don’t see Toyota or Hyundai/Kia interested nor is it likely Honda with its independent streak planning to do likewise. There’s a chance GM might find a place in the Renault-Nissan alliance, but we think a Chinese suitor is just as likely.

In any case, the industry is changing and most likely will see additional mergers, acquisitions, and alliances in the months ahead. FCA and PSA triggered the tsunami. Now we’ll witness how other automakers avoid getting consumed by the waves of change.

Rivian Attracts Another Investor;
More to Follow?

September 16, 2019 by admin 5 Comments

Upstart electric vehicle maker Rivian hasn’t manufactured one production-ready model yet, but that hasn’t kept outside parties from investing in it. This U.S. manufacturer has a plant in Normal, Illinois, along with four development centers. Rivian boasts Amazon and Ford as investors, and just this month added Cox Automotive as yet another important stakeholder.

The Latest Stake: Cox Automotive

The Cox Automotive $350 million investment follows $700 million from Amazon and $500 million from the Ford Motor Company. Despite the $1.55 billion invested by these three contributors and funds contributed by others, Rivian remains an independent company. As a result of this latest contribution, Cox gains a board seat and Rivian receives an important cash outlay.

So, who is Cox Automotive? The company is a subsidiary of Cox Enterprises, which was launched in 1898 when James M. Cox purchased the Dayton (Ohio) Daily News. Since then, the company has evolved to include the present Cox Communications — a U.S. cable company — and the Cox Media Group, a broadcasting, publishing, and digital media group.

In 2014, Cox formed Cox Automotive, which includes top brands such as Kelley Blue Book and AutoTrader. The automotive arm is also heavily involved in auto retailing, with Dealertrack, Dealer.com, and Vinsolutions in its portfolio. Manheim Auctions is yet another Cox Automotive holding.

In a press release from Rivian, we uncover Cox’s motive for investing in the automaker. “We are excited by Rivian’s unique approach to building an electrified future and to be part of the positive impact its products will bring to our roads and the world around us,” said Sandy Schwartz, president of Cox Automotive. “This investment complements Cox Automotive’s own commitment to environmental change through our Cox Conserves efforts.”

Certainly, taking a stake in Rivian enables Cox to claim an early slice of an electrified future. This move may also give the company an avenue to market new vehicles.

Two Rivian Models

Based on Rivian’s timeline, we’re still more than a year away from seeing the company’s first two models launch: the R1T pickup truck and the R1S utility vehicle. The two models share a common skateboard chassis and will be offered in 105 kWh, 135 kWh, and 180 kWh battery pack sizes.

The standard model offers a robust 402 horsepower and 413 pound-feet of torque. its most powerful version has an output of 754 horsepower and 823 pound-feet of torque. Thus, the two models boast a 0-60 mph acceleration time of under five seconds to as fast as three seconds, depending on the battery size. Vehicle range is from 230/240 to 400/410 miles, which should meet the needs of the vast majority of drivers.

Partners and Consumer Demand

If there is any probable downside to Rivian (besides executing what they’ve promised to build), then that would be demand. Indeed, Rivian is entering an unchartered territory with an electric pickup truck, as no production model has ever been built or marketed. Traditional pickup truck owners enjoy their big gas- and diesel-powered models, and may not be ready to make a switch, especially away from a brand they’ve long trusted.

We think, however, Rivian stands a very good chance with starting on the right foot, thanks in large part to its investors. For example, Amazon needs delivery vehicles and may use the R1S to supplement its fleet. Although the vehicles are smaller than the Mercedes-Benz vans now in use, the Rivian’s footprint may be ideal for cities.

Cox will likely bolster its company fleet with both models. Its cable division might easily integrate the pair, upfitting the pickup for its residential services.

As for Ford, don’t look for Rivian models to supplant the F-150 and Ranger anytime soon. However, a promised electric Ford truck may tap Rivian technology, perhaps even sharing the skateboard platform to create a third model line.

Competition and Consumer Demand

Rivian can also expect competition from Tesla, which promises its own pickup truck will eventually arrive on the scene. And if this new breed of models proves stout and affordable, the swing to electrification may finally gain traction. If so, expect more investors to beat a Rivian path.

Additional Rivian News

Rivian’s Electric Truck as a Meal Ticket

EV Shocker! Ford, Not GM Invests in Rivian

About EV Maker Rivian

Rivian Automotive Draws Interest From GM, Amazon

Rivian’s Electric Truck as a Meal Ticket

June 10, 2019 by admin 5 Comments

Rivian has yet to release a production model, but its prototypes are certainly getting a workout. Moreover, when a Rivian SUV or truck appears at a special event, including Overland West 2019, it may come with a very special feature: such as a connected electric camp kitchen.

Camping, Glamping Style

Not only was the all-wheel-drive Rivian R1T the first electric pickup truck at the annual Overland West confab this May, but it also featured a camp kitchen, one that’s powered by the truck’s battery pack. Indeed, the concept kitchen takes glamping in a new direction —a slide out stove good for making hot coffee, biscuits and gravy, and scrambled eggs.

The camp kitchen may be a concept at the moment, but just like the pictured pop-up tent, it might serve as yet another important attraction for this upstart truck. The stove slides out from the truck’s gear tunnel for ease of use, enabling meal preparation nearby. Owners can use the truck’s lights and stove for a week and they’ll only deplete 11 percent of the battery’s capacity, according to Rivian.

Overland West Expo

Overland West serves as an ideal venue for outfitters to showcase their wares. It is held at Fort Tuthill County Park in Flagstaff, Arizona, with hundreds of exhibitors on site. Motorcycle demos, SUV ride and drives, and scores of classes, slideshows, product demonstrations, and related activities, mark this three-day event.

This was the first visit to the expo for the Rivian R1T, but company personnel have attended previously. “We’ve been coming to Overland for a few years now, learning from this community how they use their vehicles,” said Rivian Creative Director Larry Parker. “Much of what we’ve learned from Overland attendees has gone into our product design.”

We’re still more than a year away from seeing a production Rivian pickup truck or utility vehicle, but the buzz continues to build in anticipation of what is to come.

Ample Power and Towing Capabillities

Powering the pickup truck is the world’s largest battery pack, a 180-kilowatt unit with an output of 750 horsepower, which is more than any model currently produced by Ford, GM, and Fiat Chrysler. Furthermore, this truck can pull up to 11,000 pounds, which places it squarely in the range of the Big Three’s most powerful models.

Other significant features of the Rivian models include its ground clearance. The adjustable air suspension raises it to as high as 14 inches, which is four to five inches higher than comparable vehicles. Rivian says the fully sealed battery pack and drive units allow the R1T to wade through up to three feet of water.

The R1T comes with a built-in air compressor and alarmed gear security loops. While braking downhill, the truck restores half the energy used on the same upslope. Importantly, detailed and downloadable maps are stored in the truck’s user interface, which is critical whenever an online connection is not available. The Rivian R1S will likely share many of these features, but not all.

Rivian: The Current Status

Rivian now has the backing of several companies, including Amazon and Ford as it prepares for the late-2020 launch of the R1T and R1S. The manufacturer has development centers in four locations and will produce its vehicles at a manufacturing plant in Normal, Illinois.

The company is currently accepting advanced orders for its vehicles. Global distribution will begin in 2021, with select markets targeted. The truck’s base price comes in around $69,000, while the utility vehicle costs from $72,500. Both models have a 0-60 mph time of under three seconds.

Rivian may or may not be the first manufacturer to the market with an electric pickup truck. Companies such as Bollinger, Tesla, and Atlis are also expected to dive in. Further, each of the major manufacturers may also jump in, giving the segment an electric conduit not seen before.

Photos courtesy of Rivian. Manufacturer retains the copyright.

EV Shocker! Ford, Not GM Invests in Rivian

April 24, 2019 by admin

RJ Scaringe and Bill Ford

RJ Scaringe, Rivian founder and CEO, and Ford Executive Chairman Bill Ford announced a $500 million Ford investment in Rivian. Through a strategic partnership, Ford will develop an all-new, next-generation battery electric vehicle for Ford’s growing EV portfolio using Rivian’s skateboard platform.

Upstart Rivian, a future manufacturer of electric vehicles, announced today a $500 million minority investment by the Ford Motor Company. Ford’s backing follows a $700 million investment by Amazon. Together, the two companies give Rivian the confidence and support it needs to launch their new products.

The Ford investment is stunning as it follows on the heels of a rumored stake sought by GM, but later canceled. Ford kept its negotiation with Rivian under wraps, which made today’s announcement all the more stunning.

A Board Seat and a Skateboard Platform

Ford’s stake will not only give it a voice in how Rivian is run — Executive Vice President and President of Global Operations Joe Hinrichs will join Rivian’s board of directors — the company will also receive access to Rivian’s proprietary skateboard platform.

That platform is already designed to uphold an SUV and pickup truck, two models that’ll underpin this emerging automaker. The first of the two is expected late next year. Other models may follow.

Some have speculated the skateboard platform will underpin an electric F-150, but that doesn’t seem at all likely. Notably, Ford is developing its own electrified truck based on its existing platform. Instead, we’re likely to see an all-new model, a dedicated electric vehicle for either the Ford or Lincoln brands. Perhaps both.

If the model is a Ford, an SUV is a logical approach. If Lincoln is selected, it might see a pickup truck, but we’re thinking an SUV designed to compete with the Tesla Model X or perhaps the upcoming Model Y, a small crossover is a more sensible approach.

Ford and Volkswagen

Ford’s Rivian connection won’t have any bearing on its burgeoning relationship with Volkswagen. Indeed, Ford CEO Jim Hackette told Automotive News today that “…the Rivian investment “does not interfere” with any potential deal with VW. ” The two automakers are collaborating on a few products, including a shared EV platform.

The Rivian stake is in addition to Ford’s $11 billion monetary contribution to its own electric vehicle quest. Ford has two electric models in the planning stages, including a Mustang-inspired crossover. The other model is the electrified F-150.

Rivian Independence

Neither Amazon nor Ford will have a controlling interest in Rivian, which will remain an independent company. Rivian already has the backing of two global investment firms: Saudi Arabia’s Abdul Latif Jameel Ltd. and Japan’s Sumitomo Corp.

As for GM, the news that Ford took its place in backing Rivian must be sending shockwaves through the Renaissance Center. To its credit, GM is ahead of Ford in all things electric, but having its chief rival jump in is not something the company’s executives can easily dismiss.

Photo courtesy of the Ford Motor Company.

About EV Maker Rivian

March 5, 2019 by admin

Rivian at the L.A. Auto Show

If you’re not familiar with Rivian or you aren’t sure what this company is all about, you’re not alone. Rivian is an electric vehicle manufacturer based in Plymouth, Michigan, but the company has yet to release a single production vehicle of its own. Instead, Rivian took the automotive world by storm when it showcased not one, but two proposed all-electric models at the 2018 Los Angeles Auto Show.

While Rivian isn’t a household name, it has earned much attention since the bombshell debut of two upcoming models: the R1T five-passenger pickup truck and the R1S seven-passenger SUV. Both models were developed in secret and offer a projected 400+ miles of electric range. When production begins next year, the company will utilize a manufacturing plant in Normal, Illinois, to build its EVs.

We gathered some interesting and fun facts about Rivian and present these details to you:

1. Founded by R.J. Scaringe

Who is R.J. Scaringe, the founder of Rivian? Scaringe is a graduate of the Massachusetts of Technology and holds a doctorate in mechanical engineering. He founded Mainstream Motors in 2009, which later became Avera Motors. Avera secured funding from the state of Florida to bring jobs to the Sunshine State, but that never happened, according to the Capitolist.

Scaringe later relocated the company to Michigan where it pushed forward with its electrification efforts under the Rivian name. The company also has a facility in Irvine, California, where it develops batteries, electrical hardware, and vehicle control software. Rivian has a presence in San Jose, where it develops self-driving technology and data. You’ll also find it has an engineering facility in the United Kingdom.

2. The company was developed under cover

How come people haven’t heard about Rivian until recently? For starters, the company is privately held, therefore it could develop under the radar apart from Wall Street scrutiny.

Yet, the automaker has revealed its intentions from time to time, including a partially revealed prototype as far back as 2011. During the ensuing years, it raised capital, moved its business to Michigan to be closer to suppliers, hired staff, secured additional funding, and developed its first two products.

3. About the two models at hand

R1T and R1S aren’t exactly models names we’ll remember. But the two vehicles, a pickup truck and a sport utility vehicle respectively, share a common platform and will likely represent Rivian’s first two models.

Both will offer three battery pack options — 105 kWh, 135 kWh, and 180 kWh — with a corresponding increase in vehicle range. The base pack has a projected 230-mile range, while the middle pack should top 300 miles. As for the top pack, this is the 400-mile-plus range you’ve been hearing about.

Every model is equipped with four electric motors, each with a 147 kWh power capacity at the wheels. The fastest model will go from 0-60 mph in under 3 seconds!

Rivian R1T pickup truck. — Rivian’s R1T pickup truck.

Some other important facts about these vehicles include its 14-inch ground clearance, which makes them suitable for taking off-road. Indeed, the company claims the Rivian models can wade through up to 3.6 feet of water and tackle a steep incline.

Although the truck’s bed is smaller than conventional trucks, its 11,000-pound towing capacity is phenomenal. Both models also come with a huge “frunk,” which is slang for the front trunk. These models sit on its power source, a skateboard design suitable for other applications. Perhaps Rivian will become both a manufacturer and a supplier to the industry.

4. Amazon took a stake in the company

If Amazon is interested in your company, then you know that your business model is a sound one. In February, Amazon invested $700 million in Rivian, taking a minority stake in the automaker. GM was rumored to be interested as well but hasn’t followed through. Likely, GM has decided its own electric efforts are enough. At least for now.

So, why Amazon? For a few reasons, including the company’s interest in pursuing green technology. Specifically, Amazon relies on its own fleet of internal combustion engine vehicles. Rivian can help Amazon transition quickly to electrification and the truck and SUV’s long range should help its package delivery business, with charges taking place during delivery downtime.

Rivian R1S utility vehicle — Rivian’s R1S utility vehicle.

5. A former Mitsubishi manufacturing plant for production.

Mitsubishi’s lone U.S. automotive plant was located in Normal, Illinois. It opened in 1988, serving as a joint venture between Mitsubishi and Chrysler called Diamond Motors. In the 1990s, Mitsubishi bought out Chrysler’s share, but production declined for years, then ended in 2015.

Mitsubishi tried unsuccessfully to find a buyer before shuttering the plant. Later, the plant was acquired by a liquidation company, which sold it to Rivian in January 2017 for just $16 million. Rivian also secured debt financing from a bank and received tax credits and other incentives from the state.

6. Rivian isn’t Tesla Motors

Rivian and Tesla Motors are not the same. While that’s obvious, the two companies are being compared for obvious reasons: they’re both EV startups based in the U.S.

While Tesla’s ascendancy came before modern electric cars were even on the market and when opposition from mainstream automotive manufacturers was strong, Rivian’s debut comes as the entire market now embraces electric cars. Technology companies, such as Amazon, are steeped in cash and want in. Thus, it is of little surprise that Rivian is attracting interest from everyone and likely won’t face the same headwinds as Tesla did.

No of this means Rivian is a shoe in. Like Tesla, the company has to prove itself and its product. Both companies may need to forge alliances with other automakers to survive long term. Perhaps the two will cooperate in some way, but that isn’t likely to happen in the short run.

Rivian interior. — The shared interior of the two Rivian models.

Rivan, We’re Watching You

Now that Rivian has broken cover, it will be interesting to watch its future moves. We’ll keep an eye on the company and will bring you the important updates moving forward.

If this is the kind of company you’d like to work for, the good news is that Rivian is hiring. They’ll eventually hire factory line workers, but they’re currently hiring an assortment of engineers, marketing people, computer experts, and office staff. While most positions listed are in Michigan, the other facilities are also building out, including the Illinois manufacturing plant.

Photos copyright Rivian.

Rivian Automotive Draws Interest From GM, Amazon

February 13, 2019 by admin

They were the darling of the 2018 Los Angeles Auto Show. Rivian Automotive, an upstart electric-vehicle company based in Michigan with a plant in Illinois, may soon bring a pair of electric vehicles to the market. The automaker showcased a pickup truck and an SUV in L.A. and may soon have the backing of a pair of very different industry giants as it moves toward production.

Amazon, GM May Invest in Rivian

News reports this week indicate that both GM and Amazon are looking at taking stakes in the fledgling automaker. GM sells more passenger vehicles in America than any other company. Amazon is the leader in online sales and has its hands in a variety of businesses. Separately, the two companies would benefit from a Rivian stake. Together, their funding would provide the backing to ensure this Tesla-fighter gets off to a great start.

The Rivian investment would value the company somewhere between $1 billion and $2 billion dollars, even without having built a single vehicle.

See Also — About Lucid Motors

The company launched in 2009 and was essentially developing under the radar, while mostly everyone’s attention was on Tesla Motors and other industry happenings.

At the L.A. show, Rivian showcased the R1T truck and the R1S SUV with both riding on the same skateboard platform. Powering each model is a quad-motor system with each motor adjoined to a wheel. Three battery size options — 105 kWh, 135 kWh, and 180 kWh — will launch the line, with a range of 240, 310, and 410 miles, respectively.

GM and Electric Vehicles

GM’s interest in the company may seem curious, given its position in the market, especially with its fleet of pickup trucks. GM builds more pickup trucks than its rival Ford, although the latter claims the best-selling model in the Ford F-150.

GM has the ability and desire to electrify its trucks, but purchasing a stake in Rivian would go far in fulfilling its own electrification needs without additional investment. Depending on how a deal is set up, Rivian’s sales totals could become GM’s. This would also go far in enabling GM to meet federal fuel-efficiency guidelines without disruption to its core operation.

Amazon’s In-House Fleet

Amazon’s involvement may seem surprising, but like other tech giants, including Apple and Google, the company is diversifying into many different fields. Further, Amazon has its own fleet of delivery vehicles, which may one day include electric models.

Owning a stake in Rivian would smooth that transition. It would also send a warning shot across the industry bow that Amazon is here to play (behind Alexa, of course). This might also signal stronger cooperation between tech and automotive giants, with perhaps the former investing heavily in the latter to further electrification and roll-out autonomous vehicles. We may see a new disruption that won’t necessarily sink established players but transform them.

See Also — About EV Maker Evian

Rivian Automotive: Digging Deeper

So, why isn’t Rivian considered vaporware by industry critics? For a number of reasons, beginning with its founder, Robert “RJ” Scaringe. Scaringe is a graduate of the Massachusetts Institute of Technology, where he achieved a doctorate in mechanical engineering.

In 2009, he formed Mainstream Motors, which was later renamed Avera Automotive. The company had originally set out to build a fuel-efficient gas-powered car but eventually transitioned to electric vehicles with an eye also on vehicle autonomy. Along the way, the company adopted its present name, won several rounds of funding, hired staff, and acquired the former Mitsubishi manufacturing plant in Normal, Illinois, for a song.

Since the L.A. Auto Show, analysts have looked closely at Rivian and most like what they see. Many compare Rivan with Tesla, but not at the CEO level, at least not in terms of bombastic behavior. While Musk has been making outlandish statements for years, including one that has led to an SEC investigation, Scaringe has quietly been building his business, conducting few interviews (including this one with Forbes), and readying his vehicles for production starting in 2020. And that’s with or without funds from GM or Amazon.

See Also — Hold Fast: VinFast Does Paris