Source: Sina Technology
Outside a factory in Central Illinois, U.S., a man repeatedly shouted, "R.J., R.J., when CEO Robert Scaringe jumped out of the company's R1T electric pickup truck!" ”
R.J., an abbreviation for Scarlinch's name, turned to the man who thanked him for providing him with a job at The Giant Factory in Rivian. The 39-year-old founder shook hands politely and then hurried to a meeting with the supplier.
Scarlinch works in the factory that once belonged to Mitsubishi Motors on weekdays, and during the half-day media open day, employees often interact with Scarlinchi through fists and waving, and the scene is just a microcosm of it.
Although their interaction has a warm element, it also shows the confidence of the CEO in leading the electric vehicle manufacturer to various challenges.
Wall Street also praised Scarlinch. He founded the company in 2009 and landed it on the capital markets in November last year through a sensational IPO. Most notably, Adam Jonas, chief automotive analyst at Morgan Stanley, believes Rivian is well positioned to challenge Tesla, the leader in the electric vehicle industry.
But like other EV makers, Rivian has also faced massive supply chain disruptions and is experiencing production hurdles that are expected but still can't be ignored internally, resulting in it falling short of production expectations last year.
Under the shadow of recession, investors have fled electric car startups to buy safer sectors, causing the company's stock price to fall by more than 60% this year.
Scarlinch is aware of the problem, but he has continued his legacy for more than a decade, remaining focused on the task at hand: proving the company's worth through products. Ironically, in recent years, when various new car-making forces have rapidly emerged in the east wind of electric vehicles, this pragmatic style has become a differentiating factor. Rivian is currently producing R1T electric pickups and Amazon's delivery vans, as well as some R1S SUVs.
Here's what Scarlinch said about Rivian's production, shortages of parts, and other issues.
Disruption of production and supply chains
Scarlinch said Rivian remains "confident" in producing 25,000 cars, including vans and R1 models, in 2022. Affected by supply chain disruptions, this estimate is less than the initial forecast of 50,000 vehicles.
For more than a year, the automotive industry has been plagued by a shortage of semiconductor chips, and the supply of wiring harnesses as automotive nerves has also been the biggest challenge facing the company. Both of these parts are crucial for automotive production.
"Most of our cars are not suffering from tight supply chains, only a small percentage are affected." Scarlinch said, "But as long as one part goes wrong, it can make us stop the whole line." ”
Scarlinch believes that the semiconductor supply chain will not return to normal until at least next year. He and other auto industry executives are in regular contact with suppliers in hopes of maximizing the volume of procurement, production and distribution.
In order to seize the opportunity, Rivian even sent some employees to the supplier's factory to help the other party solve various production problems.
"Our needs were no problem at all. The only challenge is: 'Can we produce enough cars?' After leading the media on a tour of the factory, he said, "We do have supply chain problems. It's frustrating, but we're sure to get through it. ”
Amazon delivery truck
Rivian declined to say how many delivery trucks they produced for Amazon, but on media open day, dozens of cars that had just rolled off the production line were parked outside the factory, waiting for deliveries. More vehicles are also being stepped up on the production line inside.
These electric vans are expected to become an important growth point for Rivian. Amazon is Rivian's largest shareholder, holding a 20 percent stake in it, so Rivian will prioritize the delivery of electric vans to it before it's the turn of other businesses.
RIvian said these electric vans have fewer features than the consumer-oriented R1T and R1S, so production is faster. These vehicles also go through fewer processes within the factory. For example, the lengthy and tedious process of painting, electric trucks are a full 2 hours less than other vehicles.
Victor Taylor, senior director of Rivian, who is responsible for stamping, bodywork and plastic parts, also noted that producing electric vans on the shop floor faces less complexity and takes less time.
Low-cost electric vehicles
Rivian raised prices last month due to rising commodity prices, disappointing some bookers. To reassure people, the company quickly canceled some of its bookers' price increase plans, but will still implement the price increase plan for new orders added after March 1.
After this price increase, the R1T starts at $67,500 and the R1S at $72,500. Both models are positioned as luxury cars, not Volkswagen models.
Scarlinch said the company also plans to produce low-priced products on the next-generation electric vehicle platform. The low-cost cars will be produced at the currently planned Georgia plant, which is expected to cost $5 billion and is expected to come on stream in 2024.
Scarlinch said that like other automakers, Rivian is ready to use existing models to maximize profits and improve performance.
End fuel vehicles
In Scarlinch's view, the end of fossil fuel consumer cars has just begun. The 39-year-old entrepreneur believes that sooner or later he will see the suspension of fuel vehicles in his lifetime.
Although Scarlinch did not give an exact date, he said that because automakers are forced to transform under pressure from Wall Street and regulators, the end of the fuel car will come in less than 50 years, and it may be 20 years.
"Most countries in the world will stop selling fuel vehicles. The scale of this transformation is incalculable. "The challenge is whether this is driven by policy." Only businesses that recognize that zero emissions are the end state can survive. ”
SPAC
There have been many EV startups going public in recent years, but many have opted to complete their listing goals by trading with SPAC (Special Purpose Companies). Rivian has stuck to the traditional direct IPO funding model.
Many companies listed through SPAC face financial problems and have also received letters of concern from the U.S. Securities and Exchange Commission (SEC) regarding their listings and other business issues.
Scarlinch believes that it won't be long before these companies are not to be feared by Rivian.
"As financial markets move from growth-oriented to value-oriented, I think this kind of financing is going to slowly disappear from this kind of financing and similar companies." He said, "They're going to run out of capital." ”
Dedicated driverless cars?
Tesla CEO Elon Musk recently said the company would produce "dedicated robo-taxis." He did not disclose the specific time or additional information, but said that the car would be "futuristic" and could achieve full self-driving. It is worth mentioning that although Tesla calls its driver assistance system "full autopilot" (FSD), they have not achieved true full autopilot.
Rivian has yet to announce similar car-making plans, and Scarlinch declined to comment directly on it. But he said Rivian would "offer many different products in the future."
Scarlinch moved from Southern California to the vicinity of the 300,000-square-meter factory. The outside world evaluates him as: motivated, calm-headed, not talking much (not much tweet), and working hard. It's a very different style from Musk's, but both of them are very detail-oriented and ambitious leaders.
Electric pickup
Rivian became the first company to mass-produce all-electric pickups last year, beating not only Tesla but also leading longtime leaders in the pickup market, General Motors and Ford. Ford also holds about 12 percent of Rivian.
GM's GMC Hummer electric pickup shipped last December, months later than The Rivian. Ford's electric version of the F-150, the F-150 Lightning, will also be shipped soon. Tesla's Cyberrock may not be available until next year.
While the Rivian R1T is often compared to other electric pickups, Scarlinch is not bothered by this competition and welcomes it. He believes that the market demand in the short term is enough to cover all electric pickup production.
"Humans are always obsessed with winning and losing, as if everything in life had to be a zero-sum game." He said, "But I don't see it that way... I actually want Hummer to be a big success, I hope Lightning is a big success, I hope we have a big success. From a rational point of view, I think all three things will happen. ”