Rivian Automotive Inc, the electric vehicle (EV) manufacturer, is reportedly planning to relocate portions of its manufacturing engineering team to Illinois in an effort to accelerate production, according to a recent Wall Street Journal report citing an unnamed source familiar with the matter.
The anticipated reorganization will require employees working on manufacturing engineering to move either to central Illinois or to Rivian’s headquarters in Irvine, California. While a Rivian spokesperson confirmed to Reuters the benefits of having manufacturing and engineering teams closer to their facilities in Normal, Illinois, and Irvine, the spokesperson declined to verify if the company was indeed relocating teams.
Rivian’s factory in Normal, Illinois, produces R1T electric pickup trucks and R1S SUVs. In February, the EV maker projected its 2023 production to be lower than analysts’ expectations, as the company continues to deal with ongoing supply chain disruptions. Furthermore, Rivian has been losing money on every vehicle it manufactures, and it narrowly missed its annual production target of 25,000 units last year.
Investor confidence has been shaken by weakening demand for electric vehicles amid rising interest rates and concerns of an impending recession. Relocating the manufacturing engineering team to Illinois could be a strategic move by Rivian to mitigate these challenges and streamline its production processes.
By bringing manufacturing and engineering teams closer to the production facilities, Rivian aims to enhance communication, foster innovation, and ultimately speed up vehicle production. The EV market is becoming increasingly competitive, and in order to stay ahead, manufacturers like Rivian must continuously adapt and optimize their operations.
