Rivian reduces custom orders as supply chain problems persist.
Wednesday, July 27, 2022 | Chimniii Desk
Rivian, a startup in the electric car industry, has updated its buying process to provide consumers the option of delayed customisation as the company faces challenges in meeting demand due to an increase in order volume and supply chain delays.
Before making an initial deposit for a vehicle order reservation, consumers will no longer be allowed to pick their preferred vehicle features, such as battery pack, exterior paint colour, wheels, or accessories. These options will no longer be made available until Rivian is prepared to allow customers to configure their vehicles with the supply stock and price options that are now available.
The company's online "Vehicle Studio" allows customers to browse settings, however they are unable to remember their preferences. If a potential buyer is persuaded by the browsing experience that they would like to purchase a Rivian, even if they are unsure of exactly how theirs will look, they can pay $1,000 to reserve one for delivery in late 2023.
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Rivian has had trouble scaling manufacturing to meet demand despite raising $11 billion in venture capital funding and included Amazon among its high-profile clientele. Just 5,000 of the 90,000 trucks that clients had ordered since September 2021 had been produced as of May 9, 2022, the business said on the first quarter earnings call.
The production issues make matters worse for the business at a time when rumours are circulating that Rivian may terminate up to 700 people and restructure as several of its programmes are put on hold.
The new approach is a significant wager on Rivian's consumer appeal, as its products are frequently more expensive than those of several significant rivals. The initial price of the company's R1T pickup truck is about $80,000 as opposed to $40,000 for Ford's new electric F-150 pickup truck.
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The management of Rivian is open about the causes of the modification. In an email, spokesperson Rachel Maniago said, "This better prepares us to handle a big demand backlog while navigating inflation/supply chain concerns, vehicle content modifications and enhancements."
Maniago did not mention the company's supply chain problems, but Rivian stated in April 2022 that it was having trouble competing with well-established automakers for semiconductor chips, a month before the launch of the new reservation system.
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