Rivian readies for European expansion with step-by-step approach

Rivian, the American automaker of the all-electric R1T pickup and R1S SUV, is preparing for a significant expansion across the pond. RJ Scaringe, the brain behind Rivian, confirmed during a recent sit-down with Bloomberg TV that the company has now established an operational base in Europe. This move includes a network for servicing and parts procurement, laying the groundwork for a more comprehensive expansion plan in the near future. But before you start dreaming about the glossy Rivian R1T parked in your European driveway, we need to pump the brakes a little.

Scaringe didn't explicitly state that the popular R1T and R1S models would be part of the European expansion. Instead, the anticipation is building around the forthcoming R2 SUV, which promises to be smaller, more affordable, and potentially more fitting for the European market.

While it's clear that Rivian's founder and CEO is steering towards a European presence, the first major milestone appears to be the dispatch of Amazon Electric Delivery Vans (EDVs). According to Scaringe, these EDVs are more than just a production and delivery initiative. They represent the first significant footprint of Rivian's infrastructure in Europe, complete with parts distribution capabilities and service facilities.

But, where does this leave Rivian’s electric SUV R1S and R1T pickup truck? As we navigate the twists and turns of Scaringe's comments, it seems the focus for the future remains on the R1S, R1T, and the forthcoming R2-based vehicles. Please note that RJ Scaringe referred to R2 as “vehicles” on every occasion - not just one R2, but R2-based vehicles. The Amazon EDV project, while crucial, is expected to account for roughly 20 percent of the company's manufacturing efforts.

When quizzed about why Rivian’s production and delivery guidance figures have remained conservative, despite a record-breaking Q2, Scaringe revealed a cautious approach. "We want to overdeliver on our numbers," he stated, highlighting the importance of anticipating and managing risks that could impact production. Could this be a hint of a 'slow and steady wins the race' strategy for the ambitious American automaker?

There is, however, no skirting around the impressive production figures. In Q2 2022, Rivian produced 13,992 battery electric vehicles (BEVs) at its Illinois-based plant, a staggering 218 percent increase year-over-year, and delivered 12,640 units – up 183 percent. From a percentage perspective it’s a huge increase, but when it comes to pure production numbers - Rivian still has plenty of work to do to catch up to its orders.

In terms of the upcoming R2 model, Rivian’s CFO, Claire McDonough, shared that it would likely be a mid-size crossover SUV with a competitive price tag ranging from $40,000 to $60,000. This slots right under the flagship R1T pickup and the R1S SUV, which retail at $73,000 and $78,000, respectively.

We might have to wait for the dust to settle around the launch of Amazon's EDVs and the debut of the R2-based vehicles before we see the R1S or R1T - if ever - models cruising the streets of European cities. However, one thing's for sure: Rivian's quiet, measured approach, favoring "underpromising and overdelivering," offers an interesting contrast to the noise and hype that often accompanies the electric vehicle sector. Whether this will pay off, only time will tell.

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