Rivian to cut 1 of 3 shifts for R1 production at Normal plant, starting next month

[Electric Rivilution]

Source: https://www.wglt.org/local-news/202...-for-r1-production-at-normal-plant-next-month

Rivian to cut 3rd shift for R1 production at Normal plant next month

March 5, 2024

The electric automaker Rivian will eliminate one of its three shifts in Normal next month, saying it can meet this year’s modest production goals with only two shifts because the manufacturing plant is getting more efficient.

Rivian employs around 8,000 people in Normal – the bulk of them hourly manufacturing workers. A Rivian spokesperson told WGLT on Tuesday that “all hourly employees will be offered a job on one of the two available shifts as we will increase capacity per shift.”

It’s unclear if any of those hourly workers will see their total weekly hours change as a result. The hourly jobs will still be full-time roles. The Rivian spokesperson said they “gave hourly employees the opportunity to provide feedback regarding shift patterns and to submit their own shift preference. We are assigning shifts based on tenure, preference and operational needs.”

Automakers routinely run multiple shifts inside their plants to create more hours of the day when product can be made. Rivian added a second shift in fall 2022, and the third shift in June 2023.

Rivian plans to make around 57,000 vehicles in Normal this year – the same as in 2023. High interest rates have cut in demand for EVs, including at Rivian, and founder and CEO RJ Scaringe said increasing demand is one of their key focus areas for the year. There’s also a broader skepticism about how quickly American transportation will electrify that’s led more established automakers to scale back or slow their EV investments.

“With our continued improvements in efficiency, we can meet that (57,000) goal on two shifts,” the Rivian spokesperson said Tuesday.

The change back to two shifts (day and night) will begin April 28, when the plant returns from an April shutdown. That will allow for the integration of new engineering design changes to R1 (pickups and SUVs) including significant changes to supplier and component parts, lowering how much it costs to build each EV. They’ll also use the shutdown to increase overall production capacity in Normal, by around 30%.

The shift-change news comes as Rivian prepares to unveil the design of its R2 vehicle on Thursday. The R2 will be a cheaper, smaller SUV – reportedly in the $40,000-$60,000 range – and will be Rivian’s first vehicle sold globally.

Rivian is McLean County’s second-largest employer, behind only State Farm.

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[Mark_AZR1T]

I wonder if this is part of the equation (along with retool) to allow for pilot and/or light production of the R2? This EV space is becoming more dynamic in pricing and tech, and I simply don't think people are going to wait 24+ months for an R2....The delays in GA are brutal for Rivian.

 

[evguy]

Nice to have confirmation that the shutdown is happening earlier in Q2. I think the changes in Normal are laser focused on bringing down R1 costs and increasing efficiency. I'm still skeptical of the idea that they'll start producing R2 in Normal, but would be happy to be proven wrong.

 

[ryunited]

Nice to have confirmation that the shutdown is happening earlier in Q2. I think the changes in Normal are laser focused on bringing down R1 costs and increasing efficiency. I'm still skeptical of the idea that they'll start producing R2 in Normal, but would be happy to be proven wrong.

Agreed but if they can do their 2023 volume in fewer shifts while accounting for the shutdown/cutover that sounds like substantial progress.

I had the same instinct on wondering about early R2 production but have no idea what kind of flexibility that would require on the line.

 

[evguy]

I wonder if this is part of the equation (along with retool) to allow for pilot and/or light production of the R2? This EV space is becoming more dynamic in pricing and tech, and I simply don't think people are going to wait 24+ months for an R2....The delays in GA are brutal for Rivian.

Lots of people, including me, waited 3+ years for a R1. I think plenty will be willing to wait 2 years for R2. I agree the GA delays are making things very difficult for the company, and I'll be amazed if they announce R2 deliveries starting sooner than 2026.

 

[RWerksman]

It's likely a removal of the third shift as pay for that generally commands a premium and this allows them to slightly reduce per-unit cost.

It also may be due to attrition across the entire workforce and it just making sense from a demand planning perspective.

 

[Mark_AZR1T]

Lots of people, including me, waited 3+ years for a R1. I think plenty will be willing to wait 2 years for R2. I agree the GA delays are making things very difficult for the company, and I'll be amazed if they announce R2 deliveries starting sooner than 2026.

I hear you. I pre-ordered Dec 6 2018. It's a different market today, and in mid to late 2026 there will undoubtedly be new dynamics in play. We'll see.

 

[COdogman]

This seems like a natural move given the retooling break and slowing demand for R1.

I agree it would be fantastic if they could get R2 going sooner, but it seems like by the time they really got that cranking in IL, the GA plant would be ready. That year long delay down there really is looming large right now.

 

[foxerson]

So, how far does the stock drop once this gets picked up by the financial news outlets and reworked for maximum FUD impact?

 

[Zoidz]

So, how far does the stock drop once this gets picked up by the financial news outlets and reworked for maximum FUD impact?

It shouldn't make the stock drop at all, it should cause a slight rise if anything. Rivian announced the shutdown last year, they stated it was for efficiency improvements, they stated a few weeks ago that forecasted volume was down. There are really no surprises here at all. In a Normal world, this should boost the stock a bit (see what I did there?). But the FUDruckers will have a field day with this.

 

[NineElectrics]

This seems like a natural move given the retooling break and slowing demand for R1.

I agree it would be fantastic if they could get R2 going sooner, but it seems like by the time they really got that cranking in IL, the GA plant would be ready. That year long delay down there really is looming large right now.

If demand continues to drop, they're going to magically increase production efficiency in Normal by so much that they "won't need" the GA factory. That's good, because it's expensive. They will put it on the back burner for another five years, is my prediction.

 

[pricedm]

Time to put pilot production of the R2 in Normal, using capactiy from the idle 3rd shift. I can dream, right...

 

[irfan]

Lots of people, including me, waited 3+ years for a R1. I think plenty will be willing to wait 2 years for R2. I agree the GA delays are making things very difficult for the company, and I'll be amazed if they announce R2 deliveries starting sooner than 2026.

I think it’s different now. There are more options available, less people will sit idle for 2 yrs. I wouldn’t count on customers being cool with waiting.

 

[Hillbilly]

Source: https://www.wglt.org/local-news/202...-for-r1-production-at-normal-plant-next-month

Rivian to cut 3rd shift for R1 production at Normal plant next month

March 5, 2024

The electric automaker Rivian will eliminate one of its three shifts in Normal next month, saying it can meet this year’s modest production goals with only two shifts because the manufacturing plant is getting more efficient.

Rivian employs around 8,000 people in Normal – the bulk of them hourly manufacturing workers. A Rivian spokesperson told WGLT on Tuesday that “all hourly employees will be offered a job on one of the two available shifts as we will increase capacity per shift.”

It’s unclear if any of those hourly workers will see their total weekly hours change as a result. The hourly jobs will still be full-time roles. The Rivian spokesperson said they “gave hourly employees the opportunity to provide feedback regarding shift patterns and to submit their own shift preference. We are assigning shifts based on tenure, preference and operational needs.”

Automakers routinely run multiple shifts inside their plants to create more hours of the day when product can be made. Rivian added a second shift in fall 2022, and the third shift in June 2023.

Rivian plans to make around 57,000 vehicles in Normal this year – the same as in 2023. High interest rates have cut in demand for EVs, including at Rivian, and founder and CEO RJ Scaringe said increasing demand is one of their key focus areas for the year. There’s also a broader skepticism about how quickly American transportation will electrify that’s led more established automakers to scale back or slow their EV investments.

“With our continued improvements in efficiency, we can meet that (57,000) goal on two shifts,” the Rivian spokesperson said Tuesday.

The change back to two shifts (day and night) will begin April 28, when the plant returns from an April shutdown. That will allow for the integration of new engineering design changes to R1 (pickups and SUVs) including significant changes to supplier and component parts, lowering how much it costs to build each EV. They’ll also use the shutdown to increase overall production capacity in Normal, by around 30%.

The shift-change news comes as Rivian prepares to unveil the design of its R2 vehicle on Thursday. The R2 will be a cheaper, smaller SUV – reportedly in the $40,000-$60,000 range – and will be Rivian’s first vehicle sold globally.

Rivian is McLean County’s second-largest employer, behind only State Farm.

Maybe they should increase demand through some advertising. I don't know why they're so allergic to it.

Edit: and none of the artsy fartsy ads like we see targeting the current granola eating owners. People need to see this thing out-towing, out racing, and out-offroading all kinds of different competition. Make it appeal to everyone that owns any kind of ice vehicle.

 

[Hillbilly]

Time to put pilot production of the R2 in Normal, using capactiy from the idle 3rd shift. I can dream, right...

I must be missing something. I don't see how you can take one shift and make a completely different vehicle, then switch back to another for the other two shifts.

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