Editor’s note: This story was updated with Rivian’s response
EV maker Rivian Automotive RIVN will reportedly discontinue the third shift at its Normal, Illinois plant starting next month in light of increased efficiency and subdued production outlook for FY24.
What Happened: Rivian, which currently employs approximately 8,000 workers in Normal, will be offering all hourly employees positions on the remaining two shifts, which will see an increase in capacity per shift, reported WGLT.
The shift assignments will be based on tenure, preference, and operational requirements, with employees allowed to provide feedback and submit their shift preferences. The company will shut down the plant in April to increase overall production capacity by about 30% and reopen with merely two shifts on April 28, the report added.
“With our continued improvements in efficiency, we can meet that (production) goal on two shifts,” a Rivian spokesperson told Benzinga. The company will shut its factory on April 8 to deploy changes that the company also expects will reduce costs.
Why It Matters: Rivian expects to make 57,000 vehicles this year, largely in line with its production rate last year. In 2023, the company produced 57,232 vehicles and delivered 50,122.
The subdued production guidance, the company said in February, is partly owing to high-interest rates dampening EV demand and other economic uncertainties.
Struggling Financials: Rivian reported a total revenue of $1.3 billion for the fourth quarter of 2023 and a net loss of $1.52 billion. The company ended the quarter with $9.37 billion in cash and cash equivalents, with a total liquidity of $10.47 billion, including an asset-based revolving credit facility.
The EV maker lost nearly $43,372 per vehicle delivered in the last quarter — up from nearly $31,000 in the previous quarter but significantly down from the $124,000 during the same period in 2022.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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