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Rivian generally had a good day yesterday, launching the R2 SUV alongside the surprise R3 crossover and R3X dune buggy to general praise. Buried in it press releaseHowever, it was news that the automaker would halt production at its $5 billion Georgia plant in order to save money.
Instead of building the R2 in Georgia as originally planned, the company will begin production of the electric SUV at its existing factory in Normal, Illinois. “Alongside the significant reduction in the amount of capital needed to bring R2 to market, the company believes this approach significantly reduces the risks to the launch and associated RAM,” the company said.
The move will also allow Rivian to bring the R2 to market sooner, in the first half of 2026, while saving the company $2.25 billion in capital spending in the short term. This is important because he has been burning through money lately, according to Recent reports.
Of all the electric vehicle startups that have emerged recently, Rivian has been one of the most promising thanks to significant investments from Amazon, Ford, and others. The company’s R1T electric pickup truck and R1S SUV have also been widely praised for their attractive designs, healthy range and more.
However, ramping up automotive startups is not easy, especially in a market that already exists Tough on electric vehicles Lately – even with the mighty Tesla Feeling of pinching. It doesn’t help that startup rivals like Fisker are facing serious cash flow issues, as that could scare away consumers wary of untested EV brands.
Rivian chose Georgia as the location for its second electric vehicle factory in 2021, receiving up to $1.5 billion in government incentives. At the time, the company said it hoped to eventually produce 400,000 electric cars there annually. With the plant changes, the Normal, Illinois facility will increase capacity to 215,000 units per year across R1T, R1S, EDV, RCV and R2.
The Georgia site is still in the picture, but Rivian only said that construction would resume at a later date. “Rivian’s plant in Georgia remains a very important part of its strategy to expand R2 and R3 production,” she said in a statement.
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