The production and deliveries of Rivian Automotive are expected to decline this 2024.
Reuters reported Wednesday that Rivian expects a decline in production and that deliveries would be lower in the third quarter. The company is reportedly rebuilding its inventory after experiencing a factory shutdown in April due to cost-cutting.
Rivian's shares fell around 6 % in volatile trading, and the company would stop production for one month in 2025 to introduce a smaller vehicle by 2026.
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Rivian is known for manufacturing pickup trucks such as the R1S SUV and R1T. The company has introduced new generation R1 vehicles with advanced features and offered leases to sales-boost previous generation units.
CEO RJ Scaringe shared with Reuters that the company is currently working out a depleted inventory. This would also lead to an anticipated nosedive in Rivian's deliveries for the current quarter of 2024.
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Scaringe noted that Rivian manufactured dual motor vehicles and amplified its variation production for eager customers. He added that the factory retooling's cost reduction would be determined in the second quarter of 2025.
In other news, Rivian has issued a recall on R1S and R1T models due to incorrect tire placard labels. A total of 666 vehicles were involved in the recall.
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Documents filed with the National Highway Traffic Safety Administration and obtained by Autoevolution indicated that several vehicles were called out for non-compliance with safety standards. It was discovered that the cars' placard labels contained inaccuracies.
Consequently, Rivian addressed the issue by sending out corrected overlay placards through first-class mail. The company has also highlighted the possible hazards that can occur due to mislabeling, mentioning vehicle overloading dangers and a high risk of crashing.
READ MORE HERE: Rivian Address Concern Over Weight Capacity Mislabeling on R1S and R1T: Issue Recall
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